LEG Immobilien SE

Quarterly Report • Nov 8, 2024

LEG

On Track

Quarterly report as of 30 September

Table of content

18 Risk and opportunity report
18 Forecast report

19 Consolidated financial statements
19 Consolidated statement of financial position
20 Consolidated statement of comprehensive income
21 Statement of changes in consolidated equity
22 Consolidated statement of cash flows

23 Selected Notes
23 1. Basic information on the Group
23 2. Interim consolidated financial statements
23 3. Accounting policies
23 4. Changes in the Group
23 5. Assumptions and estimates
24 6. Selected notes to the consolidated statement of financial position
28 7. Selected notes to the consolidated statement of comprehensive income
30 8. Notes on Group segment reporting
33 9. Financial instruments
36 10. Related-party disclosures
36 11. Other
36 12. The Management Board and the Supervisory Board
36 13. Supplementary Report

37 Responsibility statement
38 Financial calendar
38 Contact details \& imprint

Key figures Q3 2024

Financial key figures	Q3 2024	Q3 2023	$+/-$ \%	01.01. - 30.09.2024	01.01. - 30.09.2023	$+/-$ \%
Net cold rent	€ million	215.9	209.2	3.2	643.8	623.5
Net operating income (recurring)	€ million	180.1	177.5	1.5	530.3	516.9
EBITDA	€ million	148.4	157.8	$-6.0$	132.5	$-1.053 .4$
EBITDA (adjusted)	€ million	167.8	172.1	$-2.5$	491.7	507.3
EBT	€ million	119.8	74.5	60.8	8.8	$-1.220 .5$
Net profit or loss for the period	€ million	95.9	58.2	64.8	10.4	$-969.9$
FFO I	€ million	111.4	126.6	$-12.0$	329.3	352.6
FFO II	€ million	108.1	126.7	$-14.7$	324.7	349.4
AFFO	€ million	42.3	58.3	$-27.4$	152.0	176.9
AFFO per share	€	0.57	0.79	$-27.8$	2.05	2.39

Balance sheet key figures	30.09.2024	31.12.2023	$+/-$ \%/BP
Investment properties	€ million	17,761.9	18,101.8
Cash and cash equivalents	€ million	462.9	277.5
Equity	€ million	7,338.9	7,488.2
Total financing liabilities	€ million	9,800.0	9,375.8
Current financing liabilities	€ million	1,831.0	1,371.4 ${ }^{1}$
LTV	\%	48.5	48.4
Equity ratio	\%	37.2	38.8
EPRA NTA, diluted	€ million	9,264.6	9,379.9
EPRA NTA per share, diluted	€	124.41	126.57

Other key figures	30.09.2024	30.09.2023	$+/-$ \%/BP
Number of residential units	165,299	166,827	$-0.9$
In-place rent	€/iqm	6.80	6.57
In-place rent (I-f-I)	€/iqm	6.78	6.57
EPRA vacancy rate	\%	2.7	2.9
EPRA vacancy rate (I-f-I)	2.4	2.5	$-10$

[^0]
[^0]: $B P=$ Basis Points
${ }^{1}$ Previous year adapted

Portfolio

Portfolio segmentation and housing stock

The LEG portfolio can be divided into three market clusters using a scoring system: high-growth markets, stable markets, and higheryielding markets. The indicators for the scoring system are described in the annual report 2023. The portfolio is spread over around 240 locations, most of which are in LEG's home state of North RhineWestphalia. In addition, properties are held in the federal states of Lower Saxony, Bremen, Schleswig-Holstein, Hesse, Rhineland-Palatinate, and Baden-Wuerttemberg.

The property portfolio as of 30 September 2024 included 165,299 residential units, 1,473 commercial units and 46,503 garages and parking spaces. The average flat size was 63 square metres, and the average monthly in-place rent was EUR 6.80 per square metre.

Operating performance

On a like-for-like basis, the actual in-rent on 30 September 2024 was EUR 6.78 per sqm and month. This corresponds to an increase of $3.2 \%$ compared to the previous year's reporting date. Rent index adjustments as well as modernisations and new lettings each contributed $1.6 \%$.

The rental growth resulted from the development of the free-financed units, which accounts for $81 \%$ of the portfolio. Here, the actual in-place rent rose by $3.8 \%$ year-on-year to EUR 7.13 per sqm (like-for-like). Within the free-financed portfolio, the high-growth markets recorded an increase of $3.6 \%$ to EUR 8.19 per sqm (like-for-like). In the stable markets of the free-financed portfolio, the in-place rent rose the most by an average of $4.2 \%$, reaching EUR 6.85 per sqm (like-for-like). The higher-yielding markets recorded an increase in the monthly in-place rent of $3.3 \%$ to EUR 6.42 per square metre (like-for-like).

In the segment of rent-restricted units, which make up $19 \%$ of the portfolio, the next regular adjustment of the cost rent will take place in 2026. As a result, the average monthly in-place rent rose only slightly year-on-year by EUR 0.01 to EUR 5.37 per sqm (like-for-like).

The EPRA vacancy rate on a like-for-like basis was reduced by a further 10 basis points year-on-year to $2.4 \%$ as at 30 September 2024. The highgrowth markets recorded the lowest vacancy rate at $1.4 \%$. In the stable markets, the EPRA vacancy rate averaged $2.2 \%$ at the end of the third quarter and $4.2 \%$ in the higher-yielding markets (like-for-like in each case).

• Portfolio segments - top 5 locations 30.09.2024

	30.09.2024				Change on a like-for-like basis
	Number of LEG apartments	Share of LEG portfolio in \%	Living space in sqm	In-place rent €/sqm	EPRA vacancy rate in \%	In-place-rent like-for-like in \%	Vacancy rate like-for-like basis points
High-growth markets	49,780	30.1	3,278,404	7.62	1.6	3.0	$-20$
District of Mettmann	8,478	5.1	588,588	8.00	1.4	3.5	10
Dusseldorf	6,198	3.7	402,448	8.99	1.2	2.3	$-90$
Muenster	6,154	3.7	410,479	7.55	0.9	3.1	60
Cologne	4,388	2.7	296,367	8.26	2.4	2.8	10
Aachen	2,430	1.5	164,255	5.85	2.7	1.3	70
Other locations	22,132	13.4	1,416,267	7.15	1.8	3.2	$-40$
Stable markets	66,524	40.2	4,254,875	6.57	2.6	3.5	0
Dortmund	13,663	8.3	894,049	6.22	2.3	3.4	40
District of Unna	6,981	4.2	435,867	5.98	1.9	5.0	$-20$
Moenchengladbach	6,430	3.9	407,488	6.97	1.1	3.7	$-30$
Essen	3,653	2.2	234,930	6.69	3.0	2.8	$-50$
Bielefeld	3,229	2.0	200,987	7.27	1.2	2.3	20
Other locations	32,568	19.7	2,081,553	6.68	3.2	3.3	0
Higher-yielding markets	48,995	29.6	2,952,056	6.19	4.3	2.9	10
District of Recklinghausen	8,594	5.2	518,796	5.97	2.9	1.8	20
Gelsenkirchen	7,214	4.4	412,135	6.40	6.0	4.0	$-10$
Wilhelmshaven	6,702	4.1	387,682	6.07	10.6	3.6	30
Duisburg	6,417	3.9	387,644	6.70	2.3	2.9	0
Hamm	4,797	2.9	287,290	6.08	2.1	1.7	40
Other locations	15,271	9.2	958,509	6.09	3.2	3.1	$-10$
Total	165,299	100.0	10,485,335	6.80	2.7	3.2	$-10$

• Portfolio segments - top 5 locations 30.09.2023

	30.09.2023
	Number of LEG apartments	Share of LEG portfolio in \%	Living space in sqm	In-place rent € / sqm	EPRA vacancy rate in $\%$
High-growth markets	49,932	29.9	3,285,528	7.39	1.8
District of Mettmann	8,502	5.1	590,619	7.73	1.4
Dusseldorf	6,203	3.7	402,676	8.79	1.9
Muenster	6,154	3.7	410,486	7.32	0.3
Cologne	4,388	2.6	296,367	8.04	2.4
Aachen	2,430	1.5	164,255	5.77	2.2
Other locations	22,255	13.3	1,421,124	6.93	2.2
Stable markets	66,760	40.0	4,257,910	6.32	2.8
Dortmund	13,794	8.3	901,963	6.02	2.1
District of Unna	6,982	4.2	435,366	5.70	2.0
Moenchengladbach	6,433	3.9	407,586	6.72	1.3
Essen	3,658	2.2	235,093	6.39	7.1
Bielefeld	3,232	1.9	201,196	7.11	1.0
Other locations	32,661	19.6	2,076,707	6.42	3.2
Higher-yielding markets	50,135	30.1	3,027,641	6.00	4.5
District of Recklinghausen	9,024	5.4	548,940	5.81	2.7
Gelsenkirchen	7,249	4.3	414,665	6.15	6.6
Wilhelmshaven	6,817	4.1	394,549	5.86	10.8
Duisburg	6,419	3.8	387,844	6.51	2.3
Hamm	4,827	2.9	289,070	5.98	1.9
Other locations	15,799	9.5	992,574	5.91	3.6
Total	166,827	100.0	10,571,079	6.57	2.9

• Performance of the LEG portfolio

		High-growth markets			Stable markets
		30.09.2024	30.06.2024	30.09.2023	30.09.2024	30.06.2024	30.09.2023
Subsidised residential units
Units		11,222	11,223	11,419	12,895	12,928	13,745
Area	sqm	768,654	768,728	781,348	866,933	868,740	930,546
In-place rent	€/sqm	5.75	5.75	5.77	5.32	5.32	5.26
EPRA vacancy rate	\%	0.9	1.2	1.0	1.5	1.6	1.5
Free-financed residential units
Units		38,558	38,566	38,513	53,629	53,744	53,015
Area	sqm	2,509,750	2,510,216	2,504,180	3,387,942	3,395,369	3,327,364
In-place rent	€/sqm	8.19	8.12	7.91	6.90	6.81	6.62
EPRA vacancy rate	\%	1.7	1.8	2.0	2.8	2.9	3.0
Total residential units
Units		49,780	49,789	49,932	66,524	66,672	66,760
Area	sqm	3,278,404	3,278,944	3,285,528	4,254,875	4,264,109	4,257,910
In-place rent	€/sqm	7.62	7.56	7.39	6.57	6.50	6.32
EPRA vacancy rate	\%	1.6	1.7	1.8	2.6	2.7	2.8

		Higher-yielding markets			Total
		30.09.2024	30.06.2024	30.09.2023	30.09.2024	30.06.2024	30.09.2023
Subsidised residential units
Units		6,643	6,676	7,065	30,760	30,827	32,229
Area	sqm	434,299	436,687	463,014	2,069,886	2,074,155	2,174,908
In-place rent	€/sqm	4.90	4.90	4.88	5.39	5.39	5.36
EPRA vacancy rate	\%	1.8	1.9	2.0	1.3	1.5	1.4
Free-financed residential units
Units		42,352	42,686	43,070	134,539	134,996	134,598
Area	sqm	2,517,757	2,541,121	2,564,627	8,415,449	8,446,706	8,396,171
In-place rent	€/sqm	6.42	6.36	6.21	7.15	7.07	6.89
EPRA vacancy rate	\%	4.6	4.7	4.8	2.9	3.0	3.1
Total residential units
Units		48,995	49,362	50,135	165,299	165,823	166,827
Area	sqm	2,952,056	2,977,808	3,027,641	10,485,335	10,520,861	10,571,079
In-place rent	€/sqm	6.19	6.14	6.00	6.80	6.73	6.57
EPRA vacancy rate	\%	4.3	4.4	4.5	2.7	2.8	2.9
Total commercial
Units					1,473	1,504	1,579
Area	sqm				273,200	276,763	268,759
Total parking
Units					46,503	46,677	46,828
Total others
Units					2,981	2,901	3,116

Value development

The table below shows the distribution of assets by market segment. LEG regularly had revalued its portfolio as of 30 June 2024. The next revaluation will be as of 31 December 2024. The residential portfolio
now has a gross rental yield of $4.9 \%$ and a rental multiple of 20.3 , respectively. According to the EPRA definition, the valuation of the portfolio corresponds to a net initial yield of $3.9 \%$.

30.09.2024	Residential units ${ }^{1}$	Residential assets ${ }^{2}$	Share residential assets	Value/sqm	In-place rent multiplier	Commercial/ other assets ${ }^{3}$	Total assets
		in $€$ million	in \%	in $€$		in $€$ million	in $€$ million
High-growth markets	49,780	7,121	42	2,209	24.54	288	7,409
District of Mettmann	8,478	1,400	8	2,375	25.14	31	1,431
Dusseldorf	6,198	1,117	7	2,809	26.54	95	1,211
Muenster	6,154	1,025	6	2,493	27.64	45	1,070
Cologne	4,388	792	5	2,658	27.44	25	817
Aachen	2,430	257	2	1,554	22.84	7	264
Other locations	22,132	2,530	15	1,857	21.84	85	2,615
Stable markets	66,524	6,350	38	1,503	19.54	243	6,593
Dortmund	13,663	1,468	9	1,636	22.44	51	1,519
District of Unna	6,981	517	3	1,194	16.94	23	540
Moenchengladbach	6,430	678	4	1,660	20.04	14	693
Essen	3,653	340	2	1,519	19.74	9	349
Bielefeld	3,229	357	2	1,765	20.54	10	367
Other locations	32,568	2,990	18	1,451	18.74	134	3,125
Higher-yielding markets	48,995	3,318	20	1,131	15.84	89	3,407
District of Recklinghausen	8,594	562	3	1,135	16.14	17	579
Gelsenkirchen	7,214	423	3	1,023	14.14	11	434
Wilhelmshaven	6,702	395	2	1,017	15.54	6	401
Duisburg	6,417	526	3	1,360	17.34	28	554
Hamm	4,797	345	2	1,196	16.74	5	350
Other locations	15,271	1,067	6	1,110	15.74	22	1,089
Total	165,299	16,789	100	1,617	20.34	620	17,409
Leasehold and land values							233
Balance sheet property valuation assets (IAS 40)							17,642
Assets under construction (IAS 40)							120
Owner-occupied property (IAS 16)							84
Assets held for sale (IFRS 5)							253
Balance sheet total							18,100

${ }^{1}$ Including 2,016 residential units categorised as "assets held for sale (IFRS 5)" or "owner-occupied property (IAS 16)".
${ }^{2}$ Excluding 451 residential units in commercial buildings; including 717 commercial units as well as several other units in mixed residential assets.
${ }^{3}$ Excluding 717 commercial units in mixed residential assets; including 451 residential units in commercial buildings, commercial, parking, other assets.

Analysis of net assets, financial position and results of operations

Please see the glossary in the 2023 annual report for a definition of individual key figures and terms.

Results of operations

- Condensed income statement

€ million	Q3 2024	Q3 2023	01.01. -	01.01. -
Net operating income	158.5	163.4	461.6	30.09.2023
Net income from the disposal of investment properties	-1.0	-0.3	-2.4	-1.2
Net income from the remeasurement of investment properties	0.8	1.1	-292.6	-1,495.0
Net income from the disposal of real estate inventory	-0.2	-0.1	-0.3	-0.2
Net income from other services	1.8	5.5	1.2	22.7
Administrative and other expenses	-15.6	-15.9	-47.4	-44.5
Other income	-0.1	0.1	0.1	0.1
Operating earnings	144.2	153.8	120.2	-1,067.8
Interest income	3.8	6.2	13.4	9.4
Interest expenses	-47.2	-41.7	-136.9	-118.9
Net income from investment securities and other equity investments	46.3	-43.1	36.9	-43.4
Net income from the fair value measurement of derivatives	-27.3	-0.7	-24.8	0.2
Net finance earnings	-24.4	-79.3	-111.4	-152.7
Earnings before income taxes	119.8	74.5	8.8	-1,220.5
Income taxes	-23.9	-16.3	1.6	250.6
Net profit or loss for the period	95.9	58.2	10.4	-969.9

Net operating income rose by $2.5 \%$ in the reporting period. This development is essentially a result of the increase in net cold rents.

Adjusted EBITDA decreased by - 3.1 \% from EUR 507.3 million to EUR 491.7 million. Adjusted EBITDA margin amounted to $76.4 \%$ in the reporting period (comparative period: $81.4 \%$ ).

The EUR - 21.5 million decline in net income from other services is mainly due to the special effects from the sales of electricity produced by LEG in the same period of the previous year.

The increase in net income from investment securities and other equity investments to EUR 36.9 million essentially results from the valuation of the investment in Brack Capital Properties N.V. at fair value.

In the reporting period, net income from the fair value measurement of derivatives resulted primarily from changes in the fair value of embedded derivatives from the convertible bond in the amount of EUR - 24.8 million (comparative period: EUR 0.5 million).

The tax income is almost entirely attributable to the reversal of deferred taxes.

• Net operating income

€ million	Q3 2024	Q3 2023	$\begin{gathered} 01.01 .- \ 30.09 .2024 \end{gathered}$	$\begin{gathered} 01.01 .- \ 30.09 .2023 \end{gathered}$
Net cold rent	215.9	209.2	643.8	623.5
Profit from operating expenses	$-5.8$	$-7.0$	$-16.5$	$-16.8$
Maintenance for externally procured services	$-27.3$	$-16.1$	$-77.5$	$-63.7$
Personnel expenses (rental and lease)	$-28.7$	$-26.8$	$-86.2$	$-79.4$
Allowances on rent receivables	$-5.6$	$-4.3$	$-13.5$	$-14.0$
Depreciation and amortisation expenses	$-3.1$	$-2.9$	$-9.4$	$-11.5$
Others	13.1	11.3	20.9	12.2
Net operating income	158.5	163.4	461.6	450.3
Net operating income margin (in \%)	73.4	78.1	71.7	72.2
Non-recurring special effects (rental and lease)	0.6	0.6	4.9	2.8
Depreciation and amortisation expenses	3.1	2.9	9.4	11.5
Maintenance for externally procured services	27.3	16.1	77.5	63.7
Subsidies recognised in profit or loss	$-1.7$	-	$-9.1$	-
Own work capitalised	$-7.7$	$-5.5$	$-14.0$	$-11.4$
Net operating income (recurring)	180.1	177.5	530.3	516.9
Net operating income margin (recurring in \%)	83.4	84.8	82.4	82.9

In the reporting period, net operating income increased by EUR 11.3 million compared to the same period of the previous year. The main driver of this development is the increase in net cold rent of EUR 20.3 million. In-place rent per square metre on a like-for-like basis rose by $3.2 \%$ year-on-year. In addition, the subsidies recognized in income led to an increase of EUR 8.7 million in the line item Others. This was offset by an increase of EUR 13.8 million in maintenance expenses for externally procured services and the EUR 6.8 million increase in personnel expenses from rental and lease due to tariff increases and additional inflation compensation bonuses granted.

The adjusted net operating income (NOI)-margin decreased slightly from $82.9 \%$ to $82.4 \%$ compared to the same period of the previous year.

• EPRA vacancy rate

€ million	30.09.2024	30.09.2023
Rental value of vacant space - like-for-like	23.3	22.4
Rental value of vacant space - total	26.0	26.5
Rental value of the whole portfolio - like-for-like	966.5	910.6
Rental value of the whole portfolio - total	975.9	925.2
EPRA vacancy rate - like-for-like (in \%)	2.4	2.5
EPRA vacancy rate - total (in \%)	2.7	2.9

The EPRA vacancy rate like-for-like could be decreased from $2.5 \%$ to $2.4 \%$ compared to the same period of the previous year.

• EPRA Capex

01.01. - 30.09.2024	01.01. - 30.09.2023
Acquisitions	40.1
Development	9.6
Investments in investment properties	159.9
Thereof incremental lettable space	0.4
Thereof no incremental lettable space	159.5
EPRA Capex	209.6
Additions to/utilisation of provisions for cap	7.6
Additions to/utilisation of provisions
for incidental purchase price costs	7.0
Payments for investments
in investment properties	224.2

The presentation of EPRA capex breaks down the capitalisation of investments and reconciles them to the payments for investments in investment properties. Value-adding capital expenditure, consisting of development (new construction on own land in the amount of EUR 9.6 million) and modernisation work in investment property (EUR 159.9 million), declined by $5.3 \%$ to EUR 169.5 million in the reporting period. As acquisitions also decreased from EUR 143.3 million to EUR 40.1 million and now only include pro rata payments for acquired project developments, EPRA Capex amounts to EUR 209.6 million in the reporting period (comparative period: EUR 322.2 million).

• Maintenance and modernisation

€ million	Q3 2024	Q3 2023	$\begin{gathered} 01.01 .- \ 30.09 .2024 \end{gathered}$	$\begin{gathered} 01.01 .- \ 30.09 .2023 \end{gathered}$
Maintenance expenses for externally procured services	$-27.3$	$-16.1$	$-77.5$	$-63.7$
Maintenance expenses provided internally	$-15.4$	$-23.1$	$-44.1$	$-40.7$
Maintenance expenses	$-42.7$	$-39.2$	$-121.6$	$-104.4$
Adjustments consolidation effects	2.6	0.8	6.5	1.4
Maintenance expenses (adjusted)	$-40.1$	$-38.4$	$-115.1$	$-103.0$
Investment in investment properties	$-68.2$	$-70.0$	$-179.5$	$-178.9$
Investment in property, plant and equipment	$-4.8$	$-0.9$	$-7.8$	$-2.4$
Capital expenditure (Capex)	$-73.0$	$-70.9$	$-187.3$	$-181.3$
Adjustments consolidation effects	3.9	2.6	10.0	5.6
Capex (recurring)	$-69.1$	$-68.3$	$-177.3$	$-175.7$
Adjustments (new construction on own land, own work capitalised, subsidies recognised in profit or loss)	9.3	17.3	26.4	36.5
Capital expenditure (adjusted)	$-59.8$	$-51.0$	$-150.9$	$-139.2$
Total investment	$-115.7$	$-110.1$	$-308.9$	$-285.7$
Adjustments (consolidation effects, new construction on own land, own work capitalised, subsidies recognised in profit or loss)	15.8	20.7	42.9	43.5
Total investments (adjusted)	$-99.9$	$-89.4$	$-266.0$	$-242.2$
Area of investment properties in million sqm	10.78	10.84	10.80	10.85
Adjusted average investment per sqm (€)	9.27	8.25	24.63	22.32
Thereof maintenance expenses per sqm (€)	3.72	3.54	10.66	9.49
Thereof capital expenditure per sqm (€)	5.55	4.70	13.97	12.83

Maintenance expenses of EUR - 121.6 million and value-adding capital expenditure in investment property and property, plant and equipment of EUR - 187.3 million resulted in total investment of EUR - 308.9 million in the reporting period (comparative period: EUR - 285.7 million). In addition to the maintenance expenses of EUR - 77.5 million (comparative period: EUR - 63.7 million) for externally purchased services recognised in the statement of comprehensive income, maintenance expenses also include the intragroup maintenance expenses of EUR - 44.1 million (comparative period: EUR - 40.7 million). Investment in investment property, value-adding capital expenditure (capex) and capex (recurring) include expansion investments in the form of new construction activities on own land but not purchased project developments.

Consolidation effects, investment for new construction activities on own land, own work capitalised and subsidies recognised in profit or loss of EUR 42.9 million (comparative period: EUR 43.5 million) in total were eliminated from total investment to calculate total investment per square metre. Adjusted total investment amounts to EUR - 266.0 million (comparative period: EUR - 242.2 million) and average total investment was EUR 24.63 (comparative period: EUR 22.33) per square metre in the reporting period. The adjusted capitalisation ratio declined to $56.7 \%$ in the reporting period (comparative period: $57.5 \%$ )

Net income from the disposal of investment properties

• Net income from the disposal of investment properties

€ million	Q3 2024	Q3 2023	$\begin{gathered} 01.01 .- \ 30.09 .2024 \end{gathered}$	$\begin{gathered} 01.01 .- \ 30.09 .2023 \end{gathered}$
Income from the disposal of investment properties	35.4	13.5	86.7	52.0
Carrying amount of the disposal of investment properties	$-35.4$	$-13.5$	$-86.7$	$-52.3$
Costs of sales of investment properties	$-1.0$	$-0.3$	$-2.4$	$-0.9$
Net income from the disposal of investment properties	$-1.0$	$-0.3$	$-2.4$	$-1.2$

Income from the disposal of investment properties amounted to EUR 86.7 million (comparative period: EUR 52.0 million) and essentially relates to one major block sales for which the contract was concluded in the 2023 financial year, but the transfer of ownership taking place in the 2024 financial year.

Net income from remeasurement of investment properties

The remeasurement of investment properties was conducted as of 30 June 2024. Net income from the remeasurement of investment properties amounted to EUR - 292.6 million in the reporting period (comparative period: EUR - 1,495.0 million). Based on the property portfolio as at the beginning of the financial year (including the remeasured acquisitions), this corresponds to a decrease of - $1.6 \%$ (comparative period: - $7.4 \%$ ). The average value of investment properties (incl. IFRS 5 objects) was EUR 1,617 per square metre as at 30 September 2024 including acquisitions (only contain expiring new construction measures) (31 December 2023: EUR 1,619 per square metre).

Administrative and other expenses

Administrative and other expenses
€ million	Q3 2024	Q3 2023	01.01. - 30.09 .2024	01.01. - 30.09 .2023
Other operating expenses	-4.1	-6.4	-14.5	-17.2
Personnel expenses (administration)	-10.1	-8.0	-28.7	-23.0
Purchased services	-0.5	-0.7	-1.6	-1.9
Depreciation and amortisation expenses	-0.9	-0.8	-2.6	-2.4
Administrative and other expenses	-15.6	-15.9	-47.4	-44.5
Depreciation and amortisation expenses	0.9	0.8	2.6	2.4
Non-recurring special effects (administration)	0.3	4.0	4.5	9.4
Administrative and other expenses (recurring)	-14.4	-11.0	-40.3	-32.7

The increase in personnel expenses is due to tariff increases, additional inflation compensation bonuses granted and increases in provisions for the LTI components of Management Board remuneration. Adjusted

Net income from the disposal of real estate inventory

The remaining real estate inventory held as at 30 September 2024 amounted to EUR 0.1 million and relate to land under development.

01.01. - 30.09 .2024	01.01. - 30.09 .2023

The increase in personnel expenses is due to tariff increases, additional inflation compensation bonuses granted and increases in provisions for the LTI components of Management Board remuneration. Adjusted
administrative expenses increased by EUR 7.6 million in the first nine months compared to the same period in the previous year.

Net finance earnings

Net finance earnings

€ million	Q3 2024	Q3 2023	01.01. - 30.09 .2024	01.01. - 30.09 .2023
Interest income	3.8	6.2	13.4	9.4
Interest expenses	-47.2	-41.7	-136.9	-118.9
Net interest income	-43.4	-35.5	-123.5	-109.5
Net income from investment securities and other equity investments	46.3	-43.1	36.9	-43.4
Net income from the fair value measurement of derivatives	-27.3	-0.7	-24.8	0.2
Net finance earnings	-24.4	-79.3	-111.4	-152.7

Interest expense increased by EUR - 18.0 million year on year to EUR - 136.9 million. This includes interest expense from loan amortisation. The increase in interest expenses is mainly due to the disbursements and the increased interest rate level.

Year-on-year there is a slight increase in the average interest rate to $1.61 \%$ as at 30 September 2024 ( $1.42 \%$ as at 30 September 2023) with an almost constant average term to 5.8 years ( 5.9 years as at 30 September 2023).

Net income from other financial assets and other investments of EUR 36.9 million resulted mainly from the valuation of the investment in Brack Capital Properties N.V. at fair value.

In the reporting period, net income from the fair value measurement of derivatives resulted primarily from changes in the fair value of embedded derivatives from the convertible bond in the amount of EUR -24.8 million (comparative period: EUR 0.5 million).

Income tax expenses

• Income tax expenses

€ million	Q3 2024	Q3 2023	01.01. - 30.09.2024	01.01. - 30.09.2023
Current tax expenses	-0.5	-2.8	-0.9	-8.2
Deferred tax expenses	-23.4	-13.5	2.5	258.8
Income tax expenses	-23.9	-16.3	1.6	250.6

An effective Group tax rate of $21.86 \%$ was assumed in the reporting period in accordance with Group tax planning (comparison period: $21.1 \%$.)

Reconciliation to AFFO

AFFO is one of the most important key financial performance indicators for Group management. LEG distinguishes between FFO I (excluding net income from the disposal of investment properties), FFO II (including net income from the disposal of in-vestment properties) and AFFO (FFO I adjusted for capex). Please refer to the segment reporting for further disclosures.

Based on FFO I (after non-controlling interests), AFFO takes recurring capex measures (capex (recurring)) into account. Recurring capex measures are defined as capitalised costs from modernisation and maintenance measures as well as new construction activities on own land. When determining costs from modernisation and maintenance measures, consolidation effects due to internally procured services resulting from the elimination of intercompany profits are eliminated.

The calculation of AFFO, FFO I, and FFO II for the reporting and comparison period is as follows:

• Calculation of FFO I, FFO II und AFFO

6 million	Q3 2024	Q3 2023	01.01. - 30.09.2024	01.01. - 30.09.2023
Net cold rent	215.9	209.2	643.8	623.5
Profit from operating expenses	$-5.8$	$-7.0$	$-16.5$	$-16.8$
Personnel expenses (rental and lease)	$-28.7$	$-26.8$	$-86.2$	$-79.4$
Allowances on rent receivables	$-5.6$	$-4.3$	$-13.5$	$-14.0$
Other	3.7	5.8	$-2.2$	0.8
Non-recurring special effects (rental and lease)	0.6	0.6	4.9	2.8
Net operating income (recurring)	180.1	177.5	530.3	516.9
Net income from other services (recurring)	2.1	5.6	1.6	23.1
Personnel expenses (administration)	$-10.1$	$-8.0$	$-28.7$	$-23.0$
Non-personnel expenses (administration)	$-4.6$	$-7.0$	$-16.1$	$-19.1$
Non-recurring special effects (administration)	0.3	4.0	4.5	9.4
Administrative expenses (recurring)	$-14.4$	$-11.0$	$-40.3$	$-32.7$
Other income (recurring)	0.0	0.0	0.1	0.0
EBITDA (adjusted)	167.8	172.1	491.7	507.3
Cash interest expenses and income FFO I	$-37.0$	$-31.9$	$-104.9$	$-94.9$
Cash income taxes FFO I	$-0.1$	$-1.9$	$-0.2$	$-4.6$
Maintenance for externally procured services	$-27.3$	$-16.1$	$-77.5$	$-63.7$
Subsidies recognised in profit or loss	1.7	-	9.1	-
Own work capitalised	7.7	5.5	14.0	11.4
FFO I (before adjustment of non-controlling interests)	112.8	127.7	332.2	355.5
Adjustment of non-controlling interests	$-1.4$	$-1.1$	$-2.9$	$-2.9$
FFO I (after adjustment of non-controlling interests)	111.4	126.6	329.3	352.6
Net income from the disposal of investment properties (adjusted)	$-2.3$	1.0	$-2.3$	0.4
Cash income taxes FFO II	$-1.0$	$-0.9$	$-2.3$	$-3.6$
FFO II (incl. disposal of investment properties)	108.1	126.7	324.7	349.4
Capex (recurring)	$-69.1$	$-68.3$	$-177.3$	$-175.7$
AFFO (Capex-adjusted FFO I)	42.3	58.3	152.0	176.9

At EUR 152.0 million, AFFO in the reporting period was - $14.1 \%$ lower than in the same period of the previous year (comparative period: EUR 176.9 million). The decline in AFFO is due in particular to increased
expenses for maintenance and interest as well as the non-occurrence of earnings from electricity produced by LEG.

EPRA earnings per share (EPS)

The following table shows earnings per share according to the best practice recommendations by EPRA (European Public Real Estate Association):

• EPRA earnings per share (EPS)

€ million	Q3 2024	Q3 2023	01.01. - 30.09.2024	01.01. - 30.09.2023
Net profit or loss for the period attributable to parent shareholders	95.1	57.3	8.3	$-972.8$
Changes in value of investment properties	$-0.8$	$-1.1$	292.6	1,495.0
Net income from the remeasurement of other equity investments	$-46.2$	43.1	$-28.1$	50.2
Profits or losses on disposal of investment properties, development properties held for investment, other interests and sales of trading properties including impairment charges in respect of trading properties	1.2	0.4	2.7	1.4
Tax on profits or losses on disposals	0.8	1.0	2.1	3.7
Goodwill impairment	-	-	-	-
Changes in fair value of financial instruments and associated close-out costs	27.3	0.7	24.8	$-0.2$
Acquisition costs on share deals and non-controlling joint venture interests	0.0	$-0.2$	0.0	0.0
Deferred tax in respect of EPRA adjustments	0.1	$-0.3$	$-67.5$	$-316.6$
Refinancing expenses	-	-	-	-
Other non-cash effective interest expenses/ income	0.0	$-0.2$	0.0	$-0.4$
Non-controlling interests in respect of the above	0.6	0.7	1.9	1.8
EPRA earnings	78.1	101.4	236.8	262.1
Weighted average number of shares outstanding	74,469,665	74,109,276	74,238,749	74,109,276
EPRA earnings per share (undiluted) in $€$	1.05	1.37	3.19	3.54
Potentially diluted shares	-	-	-	-
Interest coupon on convertible bond	-	-	-	-
Amortisation expenses convertible bond after taxes	-	-	-	-
EPRA earnings (diluted)	78.1	101.4	236.8	262.1
Number of diluted shares	74,469,665	74,109,276	74,238,749	74,109,276
EPRA earnings per share (diluted) in $€$	1.05	1.37	3.19	3.54

• Condensed statement of financial position

€ million	30.09.2024	31.12.2023
Investment properties	17,761.9	18,101.8
Other non-current assets	590.0	559.0
Non-current assets	18,351.9	18,660.8
Receivables and other assets	646.5	287.4
Cash and cash equivalents	462.9	277.5
Current assets	1,109.4	564.9
Assets held for sale	253.5	77.9
Total assets	19,714.8	19,303.6
Equity	7,338.9	7,488.2
Non-current financial liabilities	7,969.0	8,004.4 ${ }^{1}$
Other non-current liabilities	2,092.9	2,102.3 ${ }^{1}$
Non-current liabilities	10,061.9	10,106.7 ${ }^{1}$
Current financial liabilities	1,831.0	1,371.4 ${ }^{1}$
Other current liabilities	483.0	337.3
Current liabilities	2,314.0	1,708.7 ${ }^{1}$
Total equity and liabilities	19,714.8	19,303.6

A fair value measurement of investment property was conducted as of 30 June 2024. The resulting profit from remeasurement of investment property of EUR - 292.6 million (comparative period: EUR - 1,495.0 million) was the main driver for the increase compared to 31 December 2023. Furthermore, additions from acquisitions with EUR 40.1 million (pro rata payments for acquired project developments), capitalisation of property modernisation measures with EUR 169.5 million and reclassification to assets held for sale of EUR 260.2 million contributed to the increase of investment properties.

Investments in short-term deposits (EUR 276.4 million), possible by the issue of a convertible bond, the deferral of operating costs not yet invoiced to the tenants in the amount of EUR 93.3 million as well as the decline in rent receivables (EUR - 7.7 million) contributed significantly to the development of the receivables and other assets.

As at 30 September 2024 Cash and cash equivalents (EUR 462.9 million) and the short-term deposits (EUR 404.4 million) included in the line item Receivables and other assets amounted to EUR 867.3 million.

The development of equity since 31 December 2023 is mainly characterised by the net profit for the period of EUR 4.7 million, the capital increase from the stock dividend (EUR 28.4 million) and the dividend distribution (EUR - 181.6 million).

Non-current and current financial liabilities increased by EUR 424.2 million compared to the previous year. This is mainly due to scheduled and unscheduled repayments of bank loans of EUR - 465.1 million, borrowing of new loans (EUR 418.2 million) and the issue of a convertible bond with a book value of EUR 462.2 million as of 30 September 2024.

While the decrease in other non-current liabilities resulted in particular from the reversal of deferred tax liabilities (EUR -2.5 million), a reduction in pension obligations (EUR -2.2 million) and the valuation of derivatives (EUR -11.0 million), there was an increase of trade payables (EUR +19.4 million), derivatives (EUR +66.5 million) and advance payments received (EUR +63.5 million) within other current liabilities.

The residual maturity profile based on the contractually defined or agreed maturities of the financial liabilities as at 30 September 2024 is as follows:

- Maturity of financing liabilities from real estate financing
	Remaining term	Remaining term	Remaining term
€ million	$<1$ year	$>1$ to 5 years	$>5$ years	Total
30.09.2024	832.9	4,481.9	4,378.4	9,693.2
31.12.2023	438.5	4,450.7	4,375.7	9,264.9

Due to the amendment to IAS 1, there is a shift in the maturities of financial liabilities from medium-term to short-term.

In accordance with the amendment to IAS 1.69 in conjunction with IAS 1.76 A/B, liabilities from convertible bonds were recognised as current liabilities, as it is technically possible to convert the instrument at any time and LEG also has a cash settlement option. The shift in maturities is independent of the economic perspective.

As at 30 September 2024, this leads to a shift of EUR 991.7 million (previous year: EUR 925.7 million) from medium-term and long-term to current financial liabilities, which resulted from the convertible bond maturing in 2028 and the convertible bond issued in the reporting period and maturing in 2030.

Accordingly, the residual maturity profile after the amendment to IAS 1 is now as follows:

- Maturity of financing liabilities from real estate financing
	Remaining term	Remaining term	Remaining term
€ million	$<1$ year	$>1$ to 5 years	$>5$ years	Total
30.09.2024	1,824.6	3,929.6	3,939.0	9,693.2
31.12.2023	$1,364.2^{1}$	$3,525.0^{2}$	4,375.7	9,264.9

The reclassification of residual maturities in accordance with IAS 1 has no impact on the contractually agreed residual maturities of the financial liabilities entered into.

EPRA Net Tangible Asset (EPRA NTA)

The EPRA NRV, NTA and NDV are relevant indicators for the real estate industry. LEG has defined EPRA NTA as its primary key figure. The calculation system for the respective key figure can be found in the glossary in the 2023 annual report.

LEG reports EPRA NTA of EUR 9,264.6 million or EUR 124.41 per share as at 30 September 2024. In the calculation, deferred taxes on investment properties are adjusted by the amount attributable to planned property disposals by LEG. Incidental acquisition costs are not taken into account.

• EPRA NRV, EPRA NTA, EPRA NDV

	30.09.2024 EPRA-NRV	30.09.2024 EPRA-NTA	30.09.2024 EPRA-NDV	31.12.2023 EPRA NRV	31.12.2023 EPRA NTA	31.12.2023 EPRA NDV
Equity attributable to shareholders of the parent company	7,313.9	7,313.9	7,313.9	7,463.2	7,463.2	7,463.2
Hybrid instruments	28.5	28.5	28.5	28.5	28.5	28.5
Diluted NAV at fair value	7,342.4	7,342.4	7,342.4	7,491.7	7,491.7	7,491.7
Deferred tax in relation to fair value gains of IP and deferred tax on subsidised loans and financial derivatives	1,942.2	1,935.4	-	1,943.4	1,935.2	-
Fair value of financial instruments	$-9.2$	$-9.2$	-	$-42.0$	$-42.0$	-
Intangibles as per the IFRS balance sheet	-	$-4.0$	-	-	$-5.0$	-
Fair value of fixed interest rate debt	-	-	405.1	-	-	744.0
Deferred taxes of fixed interest rate debt	-	-	$-88.5$	-	-	$-156.7$
Estimated ancillary acquisition costs (real estate transfer tax) ${ }^{1}$	1,744.1	-	-	1,759.4	-	-
NAV	11,019.5	9,264.6	7,659.0	11,152.5	9,379.9	8,079.0
Fully diluted number of shares	74,469,665	74,469,665	74,469,665	74,109,276	74,109,276	74,109,276
NAV per share	147.97	124.41	102.85	150.49	126.57	109.01

Loan to value ratio (LTV)

As of 30 September 2024, compared to 31 December 2023, both net debt and real estate assets had decreased resulting in an almost unchanged loan to value ratio (LTV) of $48.5 \%$ (31 December 2023: $48.4 \%)$.

• LTV

€ million	30.09 .2024	31.12 .2023
Financing liabilities	9,800.0	9,375.8
Less lease liabilities IFRS 16 (not leasehold)	13.1	15.9
Less cash and cash equivalents	867.3	405.5
Net financing liabilities	8,919.6	8,954.4
Investment properties	17,761.9	18,101.8
Assets held for sale	253.5	77.9
Participation in other real estate companies	368.1	340.1
Real estate assets	18,383.5	18,519.8
Loan to value ratio (LTV) in \%	48.5	48.4

EPRA LTV

By contrast to LTV, hybrid debt instruments with equity components such as mandatory convertible bonds are treated as financial liabilities until the date of conversion. Financial liabilities are taken into account at their nominal amount, and cash and cash equivalents are defined in accordance with IFRS. Furthermore, net debt and net assets of joint ventures and significant associates are included while significant noncontrolling interests are eliminated.

Kommunale Haus und Wohnen GmbH and Beckumer Wohnungsgesellschaft mbH are included as material associates. Furthermore, Brack Capital Properties N. V. is taken into account for reasons of transparency, although it is not an associated company from LEG's perspective.

• EPRA LTV as at 30 September 2024

€ million	Group LTV	Associated companies	Noncontrolling interests	Total
Borrowings from financial institutions	3,974.0	142.5	$-34.2$	4,082.3
Hybrid financial instruments	1,450.0	-	$-0.1$	1,449.9
Bonds	4,480.0	69.1	-	4,549.1
Net payables	-	11.1	-	11.1
Owner-occupied property (debt)	57.8	-	-	57.8
Excluding cash and cash equivalents	462.9	0.7	$-12.5$	451.1
Net financing liabilities	9,498.9	222.0	$-21.8$	9,699.1
Owner-occupied property	83.1	-	$-0.2$	82.9
Investment properties	17,642.2	410.5	$-155.0$	17,897.7
Properties held for sale	253.5	5.9	$-2.7$	256.7
Properties under development	119.7	2.2	0.0	121.9
Intangibles	4.0	0.0	0.0	4.0
Net receivables	359.1	-	6.8	365.9
Real estate assets	18,461.6	418.6	$-151.1$	18,729.1
EPRA LTV	51.5			51.8

• EPRA LTV as at 31 December 2023

€ million	Group LTV	Associated companies	Non- controlling interests	Total
Borrowings from financial institutions	4,027.3	144.9	$-38.0$	4,134.2
Hybrid financial instruments	950.0	-	-	950.0
Bonds	4,480.0	37.9	-	4,517.9
Net payables	-	37.8	-	37.8
Owner-occupied property (debt)	57.8	-	-	57.8
Excluding cash and cash equivalents	277.5	22.3	$-5.9$	293.9
Net financing liabilities	9,237.6	198.3	$-32.1$	9,403.8
Owner-occupied property	82.8	-	$-0.2$	82.6
Investment properties	18,026.2	435.3	$-156.3$	18,305.2
Properties held for sale	77.9	17.9	$-2.9$	92.9
Properties under development	75.5	2.2	0.0	77.7
Intangibles	5.0	0.0	0.0	5.0
Net receivables	103.5	-	1.3	104.8
Real estate assets	18,370.9	455.4	$-158.1$	18,668.2
EPRA LTV	50.3			50.4

Financial position

A net profit for the period of EUR 10.4 million was realised in the reporting period (comparative period: EUR - 969.9 million). Equity amounted to EUR 7,338.9 million at the reporting date ( 31 December 2023: EUR 7,488.2 million). This corresponds to an equity ratio of $37.2 \%$ (31 December 2023: $38.8 \%$ ).

A condensed form of the LEG's statement of cash flows for the reporting period is shown below:

- Cash flow statement	01.01. -	01.01. -
	30.09 .2024	30.09 .2023
Cash flow from operating activities	286.6	306.7
Cash flow from investing activities	-373.8	-235.5
Cash flow from financing activities	272.6	-127.7
Change in cash and cash equivalents	185.4	-56.5

Higher receipts from net cold rents and advance payments of operating costs had a positive impact on the net cash flow from operating activities in the reporting period, while in contrast, increased expenses for maintenance, interest and personnel led to a decline in cashflow from operating activities compared to the same period of the previous year.

Essentially, investments in short-term deposits of EUR - 276.0 million, acquisitions and modernisation of the existing portfolio with payments of EUR - 224.2 million and EUR - 9.8 million for owner-occupied property, plant and equipment contributed to the cash flow from investing activities in the amount of EUR - 373.8 million. This was offset by cash inflows from the sale of investment properties amounting to EUR 139.5 million.

In the first nine months of 2024, the issue of a convertible bond (EUR 494.9 million) and the borrowing of new loans (EUR 418.2 million) and, with an opposite effect, the repayment of bank loans (EUR - 465.1 million) and the cash dividend to shareholders (EUR - 153.2 million) were the main drivers for the cash flow from financing activities in the amount of EUR 272.6 million.

The LEG's solvency was ensured at all times in the reporting period.

Risk and opportunity report

The risks and opportunities faced by LEG in its operating activities were described in detail in the annual report 2023. To date, no further

Forecast report

Financial year 2024

With the publication of the results for the first half of 2024, LEG had raised its forecast for AFFO to a range of EUR 190 million to EUR 210 million for the 2024 financial year (previously: range of EUR 180 million to EUR 200 million). At the same time, LEG raised the forecast value for investments for the 2024 financial year to around EUR 34 per square metre (previously: around EUR 32 per square metre). The other targets were confirmed.

Based on the development since this adjustment, LEG considers itself well positioned overall to confirm its earnings targets for the 2024 financial year. For detailed explanations of the forecast, please refer to page 68 f . of the 2023 annual report.

• Outlook 2024

AFFO	between EUR 190 million and EUR 210 million
Adjusted EBITDA margin	c. $77 \%$
LTV	medium-term target level max. $45 \%$
Like-for-like rental growth	$3.2 \%-3.4 \%$
Investments	c. EUR 34 per sqm

significant risks that would lead to a different assessment of the current period have arisen or become discernible in the fiscal year 2024.

In its reporting as at 30 September 2023 (Q3-2023), LEG set out its ESG targets, which are a component of remuneration for the Management Board and senior management. The following ESG targets were set for the 2024 financial year:

• ESG targets 2024

Environment	Reduction of 4,000 tonnes $\mathrm{CO}_{2}$ through modernisation projects and changes in customer behaviour
Social	Use of 100 LEG employee hours to design, organise and implement intercultural projects by 31 December 2024
Governance	$85 \%$ of TSP employees and $99 \%$ of all other employees of LEG Group companies to have completed IT security training by 31 December 2024

Financial year 2025
LEG publishes a forecast for the 2025 financial year for the first time in its Q3-2024 report:

• Outlook 2025

AFFO	between EUR 205 million and EUR 225 million
Adjusted EBITDA margin	c. $76 \%$
LTV	medium-term target level max. $45 \%$
Like-for-like rental growth	$3.4 \%-3.6 \%$
Investments	$>$ EUR 35 per sqm

Consolidated statement of financial position

Assets
€ million	30.09 .2024	31.12 .2023
Non-current assets	18,351.9	18,660.8
Investment properties	17,761.9	18,101.8
Property, plant and equipment	140.0	139.8
Intangible assets and goodwill	4.0	5.0
Investments in associates	14.2	13.9
Other financial assets	372.1	355.4
Receivables and other assets	19.0	5.2
Deferred tax assets	40.7	39.7
Current assets	1,109.4	564.9
Real estate inventory and other inventory	11.6	4.8
Receivables and other assets	623.5	272.8
Income tax receivables	11.4	9.8
Cash and cash equivalents	462.9	277.5
Assets held for sale	253.5	77.9
Total assets	19,714.8	19,303.6

• Equity and liabilities

6 million	30.09 .2024	31.12 .2023
Equity	7,338.9	7,488.2
Share capital	74.5	74.1
Capital reserves	1,283.3	1,255.3
Cumulative other reserves	5,956.1	6,133.8
Equity attributable to shareholders of the parent company	7,313.9	7,463.2
Non-controlling interests	25.0	25.0
Non-current liabilities	10,061.9	10,106.7
Pension provisions	99.7	101.9
Other provisions	4.8	3.4
Financing liabilities	7,969.0	8,004.4
Other liabilities	75.6	81.7
Deferred tax liabilities	1,912.8	1,915.3
Current liabilities	2,314.0	1,708.7
Pension provisions	5.1	6.7
Other provisions	33.3	30.4
Provisions for taxes	0.0	0.0
Financing liabilities	1,831.0	1,371.4
Other liabilities	436.7	292.2
Tax liabilities	7.9	8.0
Total equity and liabilities	19,714.8	19,303.6

[^0]
[^0]: ${ }^{1}$ Previous year adapted

Consolidated statement of comprehensive income

* Consolidated statement of comprehensive income
€ million	Q3 2024	Q3 2023	$\begin{gathered} 01.01 . \sim \ 30.09 .2024 \end{gathered}$	$\begin{gathered} 01.01 . \sim \ 30.09 .2023 \end{gathered}$
Net operating income	158.5	163.4	461.6	450.3
Rental and lease income	323.2	311.3	962.9	937.9
Cost of sales in connection with rental and lease income	$-164.7$	$-147.9$	$-501.3$	$-487.6$
Net income from the disposal of investment properties	$-1.0$	$-0.3$	$-2.4$	$-1.2$
Income from the disposal of investment properties	35.4	13.5	86.7	52.0
Carrying amount of the disposal of investment properties	$-35.4$	$-13.5$	$-86.7$	$-52.3$
Cost of sales in connection with disposed investment properties	$-1.0$	$-0.3$	$-2.4$	$-0.9$
Net income from the remeasurement of investment properties	0.8	1.1	$-292.6$	$-1,495.0$
Net income from the disposal of real estate inventory	$-0.2$	$-0.1$	$-0.3$	$-0.2$
Income from the real estate inventory disposed of	-	-	-	-
Carrying amount of the real estate inventory disposed of	-	-	-	-
Costs of sales of the real estate inventory disposed of	$-0.2$	$-0.1$	$-0.3$	$-0.2$
Net income from other services	1.8	5.5	1.2	22.7
Income from other services	4.0	8.7	8.9	31.8
Expenses in connection with other services	$-2.2$	$-3.2$	$-7.7$	$-9.1$
Administrative and other expenses	$-15.6$	$-15.9$	$-47.4$	$-44.5$
Other income	$-0.1$	0.1	0.1	0.1
Operating earnings	144.2	153.8	120.2	$-1,067.8$
Interest income	3.8	6.2	13.4	9.4
Interest expenses	$-47.2$	$-41.7$	$-136.9$	$-118.9$
Net income from investment securities and other equity investments	46.3	$-43.1$	36.9	$-43.4$
Net income from the fair value measurement of derivatives	$-27.3$	$-0.7$	$-24.8$	0.2
Earnings before income taxes	119.8	74.5	8.8	$-1,220.5$
Income taxes	$-23.9$	$-16.3$	1.6	250.6
Net profit or loss for the period	95.9	58.2	10.4	$-969.9$
Change in amounts recognised directly in equity	$-16.8$	3.9	$-5.7$	2.2
Thereof recycling
Fair value adjustment of interest rate derivatives in hedges	$-14.1$	0.0	$-6.9$	$-2.0$
Change in unrealised gains/losses	$-17.4$	0.0	$-8.4$	$-2.5$
Income taxes on amounts recognised directly in equity	3.3	0.0	1.5	0.5
Thereof non-recycling
Actuarial gains and losses from the measurement of pension obligations	$-2.7$	3.9	1.2	4.2
Change in unrealised gains/losses	$-3.9$	5.6	1.8	6.0
Income taxes on amounts recognised directly in equity	1.2	$-1.7$	$-0.6$	$-1.8$
Total comprehensive income	79.1	62.1	4.7	$-967.7$
Net profit or loss for the period attributable to:
Non-controlling interests	0.8	0.9	2.1	2.9
Parent shareholders	95.1	57.3	8.3	$-972.8$
Total comprehensive income attributable to:
Non-controlling interests	0.8	0.9	2.1	2.9
Parent shareholders	78.3	61.2	2.6	$-970.6$
Basic earnings per share in $€$	1.28	0.77	0.11	$-13.13$
Diluted earnings per share in $€$	1.28	0.77	0.11	$-13.13$

Statement of changes in consolidated equity

• Consolidated statement of comprehensive income

	Share capital	Capital reserves	Cumulative reserves			Equity attributable to shareholders of the Group
			Revenue reserves	Actuarial gains and losses from the measurement of pension obligations	Fair value adjustment of interest derivatives in hedges		Non- controlling interests	Consolidated equity
As of 01.01.2023	74.1	1,751.1	7,214.2	$-16.4$	35.6	9,058.6	25.3	9,083.9
Net profit or loss for the period	-	-	$-972.8$	-	-	$-972.8$	2.9	$-969.9$
Other comprehensive income	-	-	-	4.2	$-2.0$	2.2	0.0	2.2
Total comprehensive income	-	-	$-972.8$	4.2	$-2.0$	$-970.6$	2.9	$-967.7$
Other	-	-	1.3	-	-	1.3	-	1.3
Change in consolidated companies	-	-	-	-	-	-	-	-
Capital increase	-	-	-	-	-	-	-	-
Withdrawals from reserves	-	-	-	-	-	-	$-2.3$	$-2.3$
Distributions	-	-	-	-	-	-	$-0.8$	$-0.8$
As of 30.09.2023	74.1	1,751.1	6,242.7	$-12.2$	33.6	8,089.3	25.1	8,114.4
As of 01.01.2024	74.1	1,255.3	6,143.1	$-18.8$	9.5	7,463.2	25.0	7,488.2
Net profit/loss for the period	-	-	8.3	-	-	8.3	2.1	10.4
Other comprehensive income	-	-	-	1.2	$-6.9$	$-5.7$	0.0	$-5.7$
Total comprehensive income	-	-	8.3	1.2	$-6.9$	2.6	2.1	4.7
Other	-	-	1.3	-	-	1.3	-	1.3
Change in consolidated companies	-	-	-	-	-	-	-	-
Capital increase	0.4	28.0	-	-	-	28.4	-	28.4
Withdrawals from reserves	-	-	-	-	-	-	$-1.4$	$-1.4$
Distributions	-	-	$-181.6$	-	-	$-181.6$	$-0.7$	$-182.3$
As of 30.09.2024	74.5	1,283.3	5,971.1	$-17.6$	2.6	7,313.9	25.0	7,338.9

Consolidated statement of cash flows

* Consolidated statement of cash flows
€ million	$\begin{gathered} 01.01 .- \ 30.09 .2024 \end{gathered}$	$\begin{gathered} 01.01 .- \ 30.09 .2023 \end{gathered}$
Operating earnings	120.2	$-1,067.8$
Depreciation on property, plant and equipment and amortisation on intangible assets	12.4	14.5
(Gains)/Losses from the measurement of investment properties	292.6	1,495.0
(Gains)/Losses from the disposal of assets held for sale and investment properties	0.1	0.3
(Gains)/Losses from the disposal of intangible assets and property, plant and equipment	$-0.1$	0.1
(Decrease)/Increase in pension provisions and other non-current provisions	$-0.5$	$-1.1$
Other non-cash income and expenses	13.3	18.1
(Decrease)/Increase in receivables, inventories and other assets	$-95.7$	$-132.5$
Decrease/(Increase) in liabilities (not including financing liabilities) and provisions	41.2	73.1
Interest paid	$-117.6$	$-101.2$
Interest received	12.7	6.3
Received income from investments	8.8	6.8
Taxes received	2.5	0.0
Taxes paid	$-3.3$	$-4.9$
Net cash from/(used in) operating activities	286.6	306.7
Cashflow from investing activities
Investments in investment properties	$-224.2$	$-279.2$
Proceeds from disposals of non-current assets held for sale and investment properties	139.5	47.5
Investments in intangible assets and property, plant and equipment	$-9.8$	$-9.3$
Proceeds from disposals of intangible assets and property, plant and equipment	0.1	0.0
Short and long term financial investments	$-276.0$	20.3
Acquisition of shares in consolidated companies	$-3.4$	$-14.8$
Net cash from/(used in) investing activities	$-373.8$	$-235.5$
Cash flow from financing activities
Borrowing of bank loans	418.2	2.3
Repayment of bank loans	$-465.1$	$-189.8$
Issue of convertible corporate bonds	494.9	70.3
Repayment of lease liabilities	$-5.7$	$-7.3$
Other payments	$-14.1$	$-0.7$
Distribution to shareholders	$-153.2$	-
Distribution and withdrawal from the reserves of non-controlling interests	$-2.4$	$-2.5$
Net cash from/(used in) financing activities	272.6	$-127.7$
Change in cash and cash equivalents	185.4	$-56.5$
Cash and cash equivalents at beginning of period	277.5	362.2
Cash and cash equivalents at end of period	462.9	305.7
Composition of cash and cash equivalents
Cash in hand, bank balances	462.9	305.7
Cash and cash equivalents at end of period	462.9	305.7

Selected Notes on the IFRS Interim Consolidated Financial statements as at 30 September 2024

1. Basic information on the Group

LEG Immobilien SE, Düsseldorf, and its subsidiaries and sub-subsidiaries, in particular LEG NRW GmbH, Düsseldorf, and its subsidiaries, collectively "LEG", are among the largest housing companies in Germany. On 30 September 2024, LEG held a portfolio of 166,772 (30 September 2023: 168,406) residential and commercial units (166,280 (30 September 2023: 167,864 ) units excluding IFRS 5 objects).

As an integrated property company, LEG engages in three core activities: the optimisation of the core business, the expansion of the value chain as well as consolidating the management platform.

The interim consolidated financial statements are prepared in euros. Unless stated otherwise, all figures have been rounded to millions of euros (EUR million). For technical reasons, tables and references can include rounded figures that differ from the exact mathematical values.

2. Interim consolidated financial statements

LEG Immobilien SE prepared the interim consolidated financial statements in accordance with the provisions of the International Financial Reporting Standards (IFRS) for interim reporting, as endorsed in the EU, and their interpretation by the Inter-national Financial Reporting Interpretations Committee (IFRIC). Based on the option under IAS 34.10, the notes to the financial statements were presented in a condensed form. The condensed interim consolidated financial statements have not been audited or subjected to an audit review. LEG primarily generates income from the rental and letting of investment properties. Rental and lease business, in essence, is unaffected by seasonal influences.

3. Accounting policies

The accounting policies applied in the interim consolidated financial statements of LEG Immobilien SE are the same as those presented in the IFRS consolidated financial statements as of 31 December 2023. These interim consolidated financial statements as at 30 September 2024 should therefore be read in conjunction with the consolidated financial statements as at 31 December 2023.

LEG Immobilien SE has fully applied the new standards and interpretations that are mandatory from 1 January 2024. The amendments to IAS 1 lead to a shift in the maturities of financial liabilities and the embedded derivatives of convertible bonds from the medium-term to the short-term range. In accordance with the amendment to IAS 1.69 in conjunction with IAS $1.76 \mathrm{~A} / \mathrm{B}$, the liabilities from convertible bonds were recognised as current liabilities, as it is technically possible to con-vert the instruments at any time. The amendments are also to be applied retrospectively to the consolidated financial statements as at 31 December 2023.

4. Changes in the Group

LEG Properties B.V. (former: Soldappart B.V.) was founded on 13 December 2023 and consolidated for the first time on 1 April 2024.

LEG-LEITWerk GmbH was founded on 29 August 2024 and consolidated for the first time as at 31 August 2024.

5. Assumptions and estimates

The preparation of interim consolidated financial statements in accordance with IFRS requires assumptions and estimates to be made that affect the recognition of assets and liabilities, income and expenses and the disclosure of contingent liabilities. These assumptions and estimates particularly relate to the measurement of investment properties, the recognition and measurement of pension provisions, the recognition and measurement of other provisions, the measurement of financing liabilities, and the eligibility for recognition of deferred tax assets.

Although the management believes that the assumptions and estimates used are appropriate, any unforeseeable changes in these assumptions could impact the net assets, financial position and results of operations.

For further information, please refer to the consolidated financial statements as at 31 December 2023.

1. Selected notes to the consolidated statement of financial position

On 30 September 2024, LEG held 165,299 apartments and 1,473 commercial units in its portfolio (166,280 units excluding IFRS 5 objects).

Investment properties developed as follows in the financial year 2023 and in 2024 up to the reporting date of the interim consolidated financial statements:

• Investment properties as at 30.09 .2024

		Residential assets
€ million	Total	High- growth markets	Stable markets	Higher- yielding markets	Commercial assets	Parking and other assets	Leasehold	Land values
Carrying amount as of 01.01.2024	$18,101.8$	$7,298.5$	$6,554.4$	$3,376.6$	240.3	378.2	213.0	40.7
Acquisitions ${ }^{1}$	40.1	15.4	20.7	0.0	4.0	0.0	-	-
Other additions	174.3	57.0	69.9	44.1	3.6	0.3	-0.6	0.0
Reclassified to assets held for sale	-260.2	-97.2	-91.0	-47.4	-11.1	-13.1	-0.1	-0.3
Reclassified to property, plant and equipment	-1.7	-	-	-0.1	-1.6	-	-	-
Reclassified from property, plant and equipment	0.2	0.1	-	0.1	-	-	-	-
Fair value adjustment	-292.6	-94.4	-94.2	-55.4	-11.3	-17.7	-20.3	0.7
Disposals	-	-	-	-	-	-	-	-
Reclassification	-	-	-48.0	-	48.0	-0.1	0.1	-
Carrying amount as of 30.09 .2024	$17,761.9$	$7,179.4$	$6,411.8$	$3,317.9$	271.9	347.6	192.1	41.1

1 Acquisitions only contain expiring new construction measures.
Fair value adjustment as of 30.09 .2024 (in Euro million):
$-292.6$

• Hereupon as of 30.09 .2024 in the portfolio:
  $-292.8$
• Hereupon as of 30.09 .2024 disposed investment properties:
  0.2
• Investment properties as at 31.12 .2023

		Residential assets
€ million	Total	High- growth markets	Stable markets	Higher- yielding markets	Commercial assets	Parking and other assets	Leasehold	Land values
Carrying amount as of 01.01.2023	$20,204.4$	$8,254.1$	$7,135.6$	$3,739.8$	385.4	403.7	252.3	33.5
Acquisitions	169.7	91.4	61.6	0.0	4.2	6.5	5.4	0.5
Other additions	268.5	86.7	102.7	57.8	3.8	1.0	-	16.4
Reclassified to assets held for sale	-121.1	-5.7	-23.7	-42.6	-41.1	-4.1	0.0	-3.9
Reclassified to property, plant and equipment	-10.0	-2.3	-1.1	-	-6.5	-0.1	-	-
Reclassified from property, plant and equipment	15.9	0.7	0.2	0.2	2.2	12.6	0.0	0.0
Fair value adjustment	$-2,422.8$	$-1,143.3$	-770.4	-376.3	-37.0	-45.2	-44.7	-5.8
Disposals	-2.8	-	-0.5	-2.3	-	-	-	-
Reclassification	-	16.9	50.0	0.0	-70.7	3.8	-	-
Carrying amount as of 31.12 .2023	$18,101.8$	$7,298.5$	$6,554.4$	$3,376.6$	240.3	378.2	213.0	40.7

Fair value adjustment as of 31.12 .2023 (in Euro million):
$-2,422.8$

• Hereupon as of 31.31.2023 in the portfolio:
  $-2,427.2$
• Hereupon as of 31.31.2023 disposed investment properties:
  4.4
  Investment properties were remeasured most recently by LEG as of the interim reporting date of 30 June 2024. No further fair value adjustment was made as at 30 September 2024. With regard to the calculation methods and parameters, please refer to the consolidated financial statements as at 31 December 2023.

Significant market developments and measurement parameters affecting the market values of LEG are reviewed each quarter. If necessary, the property portfolio is revalued. As at 30 September 2024, the results of this review did not require any value adjustment.

The tables below show the measurement method used to determine the fair value of investment properties and the material unobservable inputs used as of 30 June 2024 and 31 December 2023:

• Information on material unobservable inputs on which measurement is based (Level 3)

30.06.2024	Gross asset value of investment property $€$ million	Valuation technique ${ }^{2}$	Measurement parameters
			Market rent residential/ commercial $€ / \mathrm{raps} /$ month			Maintenance cost residential/ commercial $€ / \mathrm{raps} /$ year			Administrative cost residential/ commercial $€ /$ unit
			min	$\emptyset$	max	min	$\emptyset$	max	min	$\emptyset$	max
Residential assets
High-growth markets	7,154	DCF	4.10	9.41	16.26	5.61	12.87	17.71	141	344	522
Stable markets	6,405	DCF	1.92	8.03	14.54	8.48	12.82	17.70	211	342	531
Higher-yielding markets	3,323	DCF	1.58	6.87	10.33	6.41	13.10	17.59	171	346	522
Commercial assets	280	DCF	1.00	8.05	27.00	4.00	6.81	13.21	1	318	11,308
Leasehold	192	DCF	-	-	-	-	-	-	-	-	-
Garages, parking spaces and other units	351	DCF	-	-	-	38.72	82.04	100.88	44	44	45
Land values			Earnings/ reference value method	-	-	-	-	-	0	4	10
Total portfolio (IA5 40) ${ }^{3}$	17,746	DCF	1.00	7.97	27.00	4.00	19.80	100.88	0	313	11,308

${ }^{2}$ Furthermore, there are assets held for sale (IFRS 5) of EUR 229.3 million at Level 2 of the fair value hierarchy as at 30 June 2024.
${ }^{3}$ Property portfolio as at 31 March 2024 as at measurement date 30 June 2024.

	Measurement parameters
	Stabilised vacancy rate in \%			Discount rate in \%			Capitalisation rate in \%			Forecast rent development in \%
30.06.2024	min	$\emptyset$	max	min	$\emptyset$	max	min	$\emptyset$	max	min	$\emptyset$
Residential assets
High-growth markets	1.0	1.7	6.0	3.3	4.8	11.0	2.5	5.0	12.1	1.2	1.6
Stable markets	1.5	2.6	7.0	3.5	5.1	9.3	2.1	5.6	12.1	1.1	1.4
Higher-yielding markets	1.5	4.4	9.0	1.4	5.0	12.5	3.2	6.0	13.4	1.0	1.3
Commercial assets	1.0	2.3	8.0	3.0	6.8	10.5	3.2	7.4	11.8	1.1	1.5
Leasehold	-	-	-	3.7	4.9	9.0	-	-	-	-	-
Garages, parking spaces and other units	-	-	-	4.8	4.9	7.4	3.5	7.7	13.5	1.0	1.4
Land values	-	-	-	4.4	5.0	6.0	5.9	11.3	12.3	1.0	1.4
Total portfolio (IA5 40) ${ }^{3}$	1.0	3.0	9.0	1.4	5.0	12.5	2.1	5.8	13.5	1.0	1.4

[^0]
[^0]: ${ }^{2}$ Furthermore, there are assets held for sale (IFRS 5) of EUR 229.3 million at Level 2 of the fair value hierarchy as at 30 June 2024.

• Information on material unobservable inputs on which measurement is based (Level 3)

31.12.2023	Gross asset value of investment property € million	Valuation technique ${ }^{2}$	Measurement parameters
			Market rent residential/ commercial $\$ / \mathrm{sqm} /$ month			Maintenance cost residential/ commercial $\$ / \mathrm{sqm} /$ year			Administrative cost residential/ commercial $\$ /$ unit
			min	$\emptyset$	max	min	$\emptyset$	max	min	$\emptyset$	max
Residential assets
High-growth markets	7,302	DCF	3.87	9.29	15.70	9.28	12.91	18.01	201	344	522
Stable markets	6,564	DCF	1.91	7.85	14.79	8.48	12.89	17.70	210	342	522
Higher-yielding markets	3,377	DCF	0.51	6.68	16.62	8.22	13.18	18.27	194	346	522
Commercial assets	240	DCF	1.00	7.91	27.00	4.00	6.89	13.21	1	335	11,308
Leasehold	213	DCF	-	-	-	-	-	-	-	-	-
Garages, parking spaces and other units	378	DCF	-	-	-	38.72	82.14	100.88	44	44	45
Land values		Earnings/ reference value method
	28		-	-	-	-	-	-	0	4	10
Total portfolio (IAS 40) ${ }^{3}$	18,102	DCF	0.51	7.79	27.00	4.00	19.86	100.88	0	314	11,308

${ }^{2}$ Furthermore, there are assets held for sale (IFRS 5) of EUR 77.9 million at Level 2 of the fair value hierarchy as at 31 December 2023.
${ }^{3}$ Property portfolio as at 30 September 2023 as at measurement date 31 December 2023.

31.12.2023	Measurement parameters
	Stabilised vacancy rate in \%			Discount rate in \%			Capitalisation rate in \%			Forecast rent development in \%
	min	$\emptyset$	max	min	$\emptyset$	max	min	$\emptyset$	max	min	$\emptyset$	max
Residential assets
High-growth markets	1.0	1.8	6.0	3.1	4.7	8.7	2.3	4.9	11.7	1.3	1.6	1.9
Stable markets	1.5	2.7	9.0	3.3	4.8	9.9	1.8	5.5	12.2	1.1	1.4	1.9
Higher-yielding markets	1.5	4.5	9.0	3.5	4.6	8.0	2.9	5.9	13.0	1.0	1.3	1.6
Commercial assets	1.0	2.4	8.5	3.0	6.8	11.5	3.2	7.4	11.7	1.0	1.5	1.9
Leasehold	-	-	-	3.3	4.6	9.9	-	-	-	-	-	-
Garages, parking spaces and other units	-	-	-	4.2	4.7	6.1	3.0	7.5	12.7	1.0	1.4	1.9
Land values	-	-	-	4.1	4.6	5.0	3.8	9.2	12.2	1.0	1.2	1.5
Total portfolio (IAS 40) ${ }^{3}$	1.0	3.1	9.0	3.0	4.7	11.5	1.8	5.7	13.0	1.0	1.4	1.9

${ }^{3}$ Furthermore, there are assets held for sale (IFRS 5) of EUR 77.9 million at Level 2 of the fair value hierarchy as at 31 December 2023.

With regard to the calculation methods, please see the consolidated financial statements as of 31 December 2023.

In addition, LEG' s portfolio still includes land and buildings accounted for in accordance with IAS 16.

Property, plant and equipment as well as intangible assets included right of use leases in the amount of EUR 12.6 million as of 30 September 2024. The right of uses result from rented land and buildings, cars, heat contracting, measurement and reporting technology, IT peripheral devices as well as software. In the reporting period right of uses in the amount of EUR 2.4 million have been added.

• Right of use leases

€ million	30.09 .2024	31.12 .2023
Right of use buildings	1.0	1.4
Right of use technical equipment and machinery	7.1	9.0
Right of use operating and office equipment	4.3	4.5
Property, plant and equipment	12.4	14.9
Right of use software	0.2	0.4
Intangible assets	0.2	0.4
Right of use leases	12.6	15.3

Cash and cash equivalents mainly consist of bank balances as well as money market funds. The increase is mainly due to the investment of the funds generated by the issue of a convertible bond in money market funds. Changes in the components of consolidated equity are shown in the statement of changes in consolidated equity.

Financing liabilities are composed as follows:

- Financing liabilities
€ million	$\mathbf{3 0 . 0 9 . 2 0 2 4}$	$\mathbf{3 1 . 1 2 . 2 0 2 3}$
Financing liabilities from real estate financing	9,693.2	9,264.9
Financing liabilities from lease financing	106.8	110.9
Financing liabilities	9,800.0	9,375.8

Financing liabilities from property financing serve the financing of investment properties.

The consolidated financial statements of LEG Immobilien SE reported financial liabilities from real estate financing of EUR 9,693.2 million as at 30 September 2024. In the first three quarters of 2024, a convertible bond with a nominal value of EUR 500.0 million (EUR 462.2 million IFRS carrying amount) and loans in the amount of EUR 418.2 million were valued. This was offset by scheduled and unscheduled repayments of EUR 471.7 million and the amortisation of transaction costs.

The financial liabilities from real estate financing include the following capital market instruments as of the reporting date:

• Capital markets instruments as of 30.09.2024

	IFRS carrying amount	Nominal value
Convertible bond 2024/2030	462.2	500.0
Convertible bond 2020/2028	536.5	550.0
Convertible bond 2017/2025	398.0	400.0
Bond 2023/2029	85.2	100.0
Bond 2023/2031	74.2	100.0
Bond 2022/2026	499.9	500.0
Bond 2022/2029	499.0	500.0
Bond 2022/2034	500.2	500.0
Bond 2021/2032	497.5	500.0
Bond 2021/2031	597.0	600.0
Bond 2021/2033	597.6	600.0
Bond 2019/2034	300.3	300.0
Bond 2019/2027	501.3	500.0

The convertible bonds were classified and recognised in full as debt due to the issuer's contractual cash settlement option. There are several embedded derivatives and derivatives that must be separated that are to be jointly regarded as a com-pound derivative and carried at fair value. The host debt instrument is recognised at amortised cost.

The change in financial liabilities from lease financing in the reporting period essentially results from the decrease in lease liabilities for measurement and reporting technology. For leases that have already been concluded and do not begin until after the balance sheet date, there will be possible future cash outflows of EUR 1.5 million.

• Maturity of financing liabilities from real estate financing

	Remaining term $<1$ year	Remaining term $>1$ to 5 years	Remaining term $>5$ years	Total
30.09 .2024	$1,824.6$	$3,929.6$	$3,939.0$	$9,693.2$
31.12 .2023	$1,364.2^{1}$	$3,525.0^{1}$	$4,375.7$	$9,264.9$

${ }^{1}$ Previous year adapted

The main driver for the change in the maturity distribution compared to 31 December 2023 is the remaining maturity of two corporate bonds, which led to an increase in financial debt with a mid-term maturity and a corresponding decrease in financial debt with a long-term maturity. Furthermore, the amendment to IAS 1 led to a shift in the maturities of financial liabilities from medium-term to short-term. In accordance with the amendment to IAS 1.69 in conjunction with IAS 1.76 A/B, liabilities from convertible bonds were recognised as current liabilities, as it is technically possible to convert the instrument at any time and LEG also has a cash settlement option. The shift in maturities is independent of the economic perspective.

As at 30 September 2024, this resulted in a shift of EUR 991.7 million (previous year: EUR 925.7 million) from medium-term and long-term financial liabilities to short-term financial liabilities, which resulted from the convertible bond maturing in 2028 and the convertible bond issued in the reporting period and maturing in 2030.

The reclassification of residual maturities in accordance with IAS 1 has no impact on the contractually agreed residual maturities of the financial liabilities entered into.

7. Selected notes to the consolidated statement of comprehensive income

Net operating income is broken down as follows:

- Net operating income
€ million	01.01. - 30.09.2024	01.01. - 30.09.2023
Net cold rent	643.8	623.5
Profit from operating expenses	$-16.5$	$-16.8$
Maintenance for externally procured services	$-77.5$	$-63.7$
Personnel expenses (rental and lease)	$-86.2$	$-79.4$
Allowances on rent receivables	$-13.5$	$-14.0$
Depreciation and amortisation expenses	$-9.4$	$-11.5$
Others	20.9	12.2
Net operating income	461.6	450.3
Net operating income margin (in \%)	71.7	72.2
Non-recurring special effects (rental and lease)	4.9	2.8
Depreciation and amortisation expenses	9.4	11.5
Maintenance for externally procured services	77.5	63.7
Subsidies recognised in profit or loss	$-9.1$	-
Own work capitalised	$-14.0$	$-11.4$
Net operating income (recurring)	530.3	516.9
Net operating income margin (recurring in \%)	82.4	82.9

In the reporting period, net operating income increased by EUR 11.3 million compared to the same period of the previous year. The main drivers of this development were the increase in net cold rent of EUR 20.3 million. In-place rent per square metre on a like-for-like basis rose by $3.2 \%$ year-on-year. In addition, the subsidies recognized in income led to an increase of EUR 8.7 million in the line item Others. This was offset by an increase of EUR 13.8 million in maintenance expenses for externally procured services and the EUR 6.8 million increase in personnel expenses from rental and lease due to tariff in-creases and additional inflation compensation bonuses granted.

The adjusted net operating income (NOI)-margin decreased slightly from $82.9 \%$ to $82.4 \%$ compared to the same period of the previous year.

In the reporting period the following depreciation expenses for right of use from leases were included.

- Depreciation expenses of leases
€ million	01.01. - 30.09.2024	01.01. - 30.09.2023
Right of use buildings	0.2	0.2
Right of use technical equipment and machinery	1.9	2.9
Right of use operating and office equipment	2.1	2.1
Depreciation expenses of leases	4.2	5.2

In the reporting period expenses of leases of a low-value asset in the amount of EUR 0.4 million were included in the net operating income (comparable period: EUR 0.4 million).

Net income from the disposal of investment properties is composed as follows:

• Net income from the disposal of investment properties

	01.01. - 30.09.2024	01.01. - 30.09.2023
Income from the disposal of investment properties	86.7	52.0
Carrying amount of the disposal of investment properties	-86.7	-52.3
Costs of sales of investment properties	-2.4	-0.9
Net income from the disposal of investment properties	-2.4	-1.2

Net income from the remeasurement of investment properties

The remeasurement of investment properties was conducted as of 30 June 2024. Net income from the remeasurement of investment properties amounted to EUR - 292.6 million in the reporting period (comparative period: EUR - 1,495.0 million). Based on the property portfolio as at the beginning of the financial year (including the remeasured acquisitions), this corresponds to a decrease of - $1.6 \%$ (comparative period: - 7.4 \%). The average value of investment properties (incl. IFRS 5 objects) was EUR 1,617 per square metre as at 30 September 2024 including acquisitions (only contain expiring new construction measures) (31 December 2023: EUR 1,619 per square metre).

Administrative and other expenses

• Administrative and other expenses

01.01. - 30.09 .2024	01.01. - 30.06 .2023
Other operating expenses	-14.5
Personnel expenses (administration)	-28.7
Purchased services	-1.6
Depreciation and amortisation	-2.6
Administrative and other expenses	-47.4
Depreciation and amortisation	2.6
Non-recurring special effects (administration)	4.5
Administrative and other expenses (recurring)	-40.3

The increase in personnel expenses is due to tariff increases, additional inflation compensation bonuses granted and increases in provisions for the LTI components of Management Board remuneration. Adjusted administrative expenses increased by EUR 7.6 million in the first nine months compared to the same period in the previous year.

In the reporting period following depreciation expenses for right of use from leases are included.

Depreciation expenses of leases
01.01. -	01.01. -
30.09 .2024	30.09 .2023
	0.3	0.3
Right of use building	0.2	0.2
Right of use operating and office equipment	0.7	0.7
Right of use software

Net interest income

Net interest income is composed as follows:

• Interest income

01.01. - 30.09 .2024	01.01. - 30.09 .2023
Interest income from bank balances
Interest income from loans	7.5
Interest income from other financial instruments	0.2
Other interest income	0.4
Interest income	5.3

Interest income increased by EUR 4.0 million to EUR 13.4 million compared to the same period of the previous year. The increase in interest income is mainly due to higher interest on cash investments.

• Interest expenses

01.01. - 30.09 .2024	01.01. - 30.09 .2023
Interest expenses from real estate financing	-113.7
Interest expense from loan amortisation	-16.6
Prepayment penalties	-
Interest expense from interest derivatives
for real estate financing	0.0
Interest expense from change
in pension provisions	-2.5
Interest expense from interest
on other assets and liabilities	-0.1
Interest expenses from lease financing	-1.8
Other interest expenses	-1.8
Interest expenses	-136.9

The increase in interest expenses by EUR - 18.0 million to EUR - 136.9 million is mainly due to the valuations after the comparative period and higher interest rate level.

Income taxes

• Income tax expenses

01.01. - 30.09 .2024	01.01. - 30.09 .2023
Current tax expenses	-0.9
Deferred tax expenses	2.5
Income tax expenses	1.6

As at 30 September 2024, an effective Group tax rate of $21.86 \%$ was assumed in accordance with Group tax planning (comparative period: $21.1 \%)$.

The decrease in current tax expenses is mainly due to special effects from the sale of electricity in the comparative period.

The deferred tax income is essentially based on the release of deferred tax liabilities as part of the devaluation of investment properties and is therefore significantly lower compared to the comparative period.

Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to the shareholders by the average number of shares outstanding during the reporting period.

Due to the granting of stock dividends for the financial year 2023, a capital increase was carried out on 24 June 2024. A total of 360,389 new shares were issued.

• Earnings per share (basic)

€ million	$\mathbf{0 1 . 0 1 .} \mathbf{-}$ $\mathbf{3 0 . 0 9 . 2 0 2 4}$	$\mathbf{0 1 . 0 1 .}$ - $\mathbf{3 0 . 0 9 . 2 0 2 3}$
Net profit or loss attributable to shareholders in € million	8.3	-972.8
Average numbers of shares outstanding	$74,238,749$	$74,109,276$
Earnings per share (basic) in €	0.11	-13.13

• Earnings per share (diluted)

€ million	$\mathbf{0 1 . 0 1 .}$ - $\mathbf{3 0 . 0 9 . 2 0 2 4}$	$\mathbf{0 1 . 0 1 .}$ - $\mathbf{3 0 . 0 9 . 2 0 2 3}$
Net profit or loss attributable to shareholders in € million	8.3	-972.8
Convertible bond coupon after taxes	3.3	3.4
Measurement of derivatives after taxes	24.8	-0.5
Amortisation of the convertible bond after taxes	3.4	2.4
Net profit or loss for the period for diluted earnings per share	39.8	-967.5
Average weighted number of shares outstanding	$74,238,749$	$74,109,276$
Number of potentially new shares in the event of exercise of conversion rights	$7,112,329$	$7,112,329$
Number of shares for diluted earnings per share	$81,351,078$	$81,221,605$
Intermedia result in €	0.49	-11.91
Diluted earnings per share in €	0.11	-13.13

As at 30 September 2024, LEG Immobilien SE had convertible bonds outstanding, which authorise the bearer to conversion into up to 7.1 million new ordinary shares.

Diluted earnings per share are calculated by increasing the average number of shares outstanding by the number of all potentially dilutive shares. The net profit/loss for the period is adjusted for the expenses no longer incurring for the interest coupon, the measurement of the embedded derivatives and the amortisation of the convertible bond and the resulting tax effect in the event of the conversion rights being exercised in full.

8. Notes on Group segment reporting

LEG has operated in only one segment since the 2016 financial year. It generates its revenue and holds its assets exclusively in Germany. In the financial year 2024, LEG did not generate sales of more than $10 \%$ of total reported sales with any customer.

In addition to the minimum disclosures required by IFRS 8, the company's key performance indicators are explained and presented below. These correspond to the management and reporting system used by LEG for corporate management and provide a deeper insight into the economic performance of LEG.

Internal reporting at LEG deviates from the IFRS accounting figures. LEG's internal reporting focuses in particular on the key performance indicators of AFFO, the adjusted EBITDA margin and LTV, as well as the other key financial performance indicators figures for the housing industry of EPRA NTA and net cold rent. The alternative performance indicators presented below are not bases on the IFRS figures, with the exception of the comments on LTV.

AFFO

AFFO is one of the most important key financial performance indicator for Group management. LEG distinguishes between FFO I (excluding net income from the disposal of investment properties), FFO II (including net income from the disposal of investment properties) and AFFO (FFO I adjusted for capex).

The calculation of AFFO, FFO I, and FFO II for the reporting and comparison period is as follows:

• Calculation of FFO I, FFO II und AFFO

€ million	01.01. - 30.09.2024	01.01. - 30.09.2023
Net cold rent	643.8	623.5
Profit from operating expenses	-16.5	-16.8
Personnel expenses (rental and lease)	-86.2	-79.4
Allowances on rent receivables	-13.5	-14.0
Other	-2.2	0.8
Non-recurring special effects (rental and lease)	4.9	2.8
Net operating income (recurring)	530.3	516.9
Net income from other services (recurring)	1.6	23.1
Personnel expenses (administration)	-28.7	-23.0
Non-personnel expenses (administration)	-16.1	-19.1
Non-recurring special effects (administration)	4.5	9.4
Administrative expenses (recurring)	-40.3	-32.7
Other income (recurring)	0.1	0.0
EBITDA (adjusted)	491.7	507.3
Cash interest expenses and income FFO I	-104.9	-94.9
Cash income taxes FFO I	-0.2	-4.6
Maintenance for externally procured services	-77.5	-63.7
Subsidies recognised in profit or loss	9.1	0.0
Own work capitalised	14.0	11.4
FFO I (before adjustment	332.2	355.5
of non-controlling interests)	-2.9	-2.9
Adjustment of non-controlling interests	329.3	352.6
FFO I (after adjustment
of non-controlling interests)	-2.3	0.4
Net income from the disposal	-2.3	-3.6
of investment properties (adjusted)	324.7	349.4
Cash income taxes FFO II	-177.3	-175.7
FFO II (incl. disposal of investment properties)	152.0	176.9
Capex (recurring)
AFFO (Capex-adjusted FFO I)

EBITDA is adjusted for non-recurring effects to ensure comparability with previous periods. Adjustments are made for all items that are not attributable to operations in the period and that have a not insignificant effect on EBITDA. These special effects of a non-recurring nature include project costs for business model and process optimisation, personnel matters, acquisition and integration costs, capital market financing and M\&A activities as well as other atypical matters.

These are composed as follows:

• Special one-off effects

€ million	01.01. - 30.09.2024	01.01. - 30.09.2023
Project costs to optimise the
business model and processes	0.9	3.6
Staff related costs	5.8	1.9
Acquisition and integration related costs	1.1	3.5
Capital market financing and M\&A activities	1.2	1.1
Other atypical matters	0.4	0.7
Special one-off effects	9.4	10.8

EBITDA adjusted for these special items is further adjusted for cash interest income and expenses, cash taxes, maintenance expenses for externally procured services, subsidies recognised in profit or loss, own work capitalised and non-controlling interests in FFO I.

Cash interest expenses are composed as follows:

• Cash interest expenses

€ million	01.01. - 30.09.2024	01.01. - 30.09.2023
Interest expense reported in income statement	136.9	118.9
Interest expense related to loan amortisation	-16.6	-15.0
Interest costs related to the
accretion of other assets/liabilities	-0.1	-0.1
Interest expenses related to
changes in pension provisions	-2.5	-2.8
Other interest expenses	0.0	0.2
Cash effective interest expense (gross)	117.7	101.2
Cash effective interest income	12.8	6.3
Cash effective interest expense (net)	104.9	94.9

Based on FFO I (after non-controlling interests), AFFO takes recurring capex measures (capex (recurring)) into account. Recurring capex measures are defined as capitalised costs from modernisation and maintenance measures as well as new construction activities on own land. When determining costs from modernisation and maintenance measures, consolidation effects due to internally procured services resulting from the elimination of intercompany profits are eliminated.

EPRA Net Tangible Asset (EPRA NTA)

The EPRA NRV, NTA and NDV are relevant indicators for the real estate industry. LEG has defined the EPRA NTA as its primary key figure. Another relevant key financial indicator is EPRA NTA per share. The calculation system for the respective key figures can be found in the glossary of the 2023 annual report.

LEG reports EPRA NTA of EUR 9,264.6 million or EUR 124.41 per share as at 30 September 2024. In the calculation, deferred taxes on investment property are adjusted by the amount attributable to planned property disposals by LEG. Incidental acquisition costs are not taken into account. The key figures are presented on a diluted basis only. As at 30 September 2024, no dilution effects from the convertible bonds are taken into account, as the share price does not exceed the current con-version prices as at the reporting date.

• EPRA NRV, EPRA NTA, EPRA NDV

	30.09.2024 EPRA NRV	30.09.2024 EPRA NTA	30.09.2024 EPRA NDV	31.12.2023 EPRA NRV	31.12.2023 EPRA NTA	31.12.2023 EPRA NDV
Equity attributable to shareholders of the parent company	7,313.9	7,313.9	7,313.9	7,463.2	7,463.2	7,463.2
Hybrid instruments	28.5	28.5	28.5	28.5	28.5	28.5
Diluted NAV at fair value	7,342.4	7,342.4	7,342.4	7,491.7	7,491.7	7,491.7
Deferred tax in relation to fair value gains of IP and deferred tax on subsidised loans and financial derivatives	1,942.2	1,935.4	-	1,943.4	1,935.2	-
Fair value of financial instruments	$-9.2$	$-9.2$	-	$-42.0$	$-42.0$	-
Intangibles as per the IFRS balance sheet	-	$-4.0$	-	-	$-5.0$	-
Fair value of fixed interest rate debt	-	-	405.1	-	-	744.0
Deferred taxes of fixed interest rate debt	-	-	$-88.5$	-	-	$-156.7$
Estimated ancillary acquisition costs (real estate transfer tax) ${ }^{1}$	1,744.1	-	-	1,759.4	-	-
NAV	11,019.5	9,264.6	7,659.0	11,152.5	9,379.9	8,079.0
Fully diluted number of shares	74,469,665	74,469,665	74,469,665	74,109,276	74,109,276	74,109,276
NAV per share	147.97	124.41	102.85	150.49	126.57	109.01

LEG's calculation of EPRA NTA is based on the Best Practice Recommendations of the European Public Real Estate Association (EPRA).

The purchase price obligations from share deals recognised as liabilities are shown as effects from the exercise of options, convertible bonds and other rights to equity amounting to EUR 28.5 million.

Deferred taxes resulting from the measurement of investment properties and from the measurement of publicly subsidised loans as well as the measurement of derivatives are adjusted in the amount of the equity impact. Deferred taxes relating to the planned sales programme are not taken into account in the determination of the EPRA NTA. Deferred taxes on investment properties and on subsidised loans as well as derivatives, which are taken into account in the EPRA NTA, amounted to a total of EUR 1,935.4 million as at 30 September 2024.

Effects of the fair value measurement of derivative financial instruments are also eliminated in calculating the EPRA NTA. If these effects from the measurement of derivatives relate to the equity value calculated in the "Effects on equity from the exercise of options, convertible bonds and other rights" item, these are not included under "fair value of financial instruments". As at 30 September 2024, these effects totalled EUR - 9.2 million.

In addition, all recognised intangible assets are eliminated. As at 30 September 2024 these totalled EUR 4.0 million.

The estimated incidental acquisition costs are calculated on the basis of the net market values of the property portfolio. In accordance with the property portfolios in the various federal states, real estate transfer tax is taken into account. In addition, brokerage courtage and notary fees are applied in determining the estimated incidental acquisition costs.

Loan to value ratio (LTV)

As of 30 September 2024, compared to 31 December 2023, both net debt and real estate assets had decreased resulting in an almost unchanged loan to value ratio (LTV) of $48.5 \%$ (31 December 2023: 48.4 \%).

$\bullet$ LTV
$€$ million	$\mathbf{3 0 . 0 9 . 2 0 2 4}$	$\mathbf{3 1 . 1 2 . 2 0 2 3}$
Financing liabilities	9,800.0	9,375.8
Less lease liabilities IFRS 16 (not leasehold)	13.1	15.9
Less cash and cash equivalents	867.3	405.5
Net financing liabilities	$\mathbf{8 , 9 1 9 . 6}$	$\mathbf{8 , 9 5 4 . 4}$
Investment properties	$\mathbf{1 7 , 7 6 1 . 9}$	$\mathbf{1 8 , 1 0 1 . 8}$
Assets held for sale	253.5	77.9
Participation in other real estate companies	368.1	340.1
Real estate assets	$\mathbf{1 8 , 3 8 3 . 5}$	$\mathbf{1 8 , 5 1 9 . 8}$
Loan to value ratio (LTV) in \%	48.5	48.4

Maintenance and modernisation

The maintenance expenses from the perspective of the companies that hold properties consist of maintenance expenses for externally purchased services and maintenance expenses purchased internally by the service companies of LEG. Value-adding capital expenditure includes investment in investment property and in property, plant and equipment. Investment in investment property, value-adding capital expenditure (capex) and capex (recurring) include expansion investments in the form of new construction activities by LEG but not purchased project developments. Consolidation effects, investment for new construction work by LEG, own work capitalised and subsidies recognised in profit or loss are eliminated from total investment when calculating total investment per square metre.

- Maintenance and modernisation
€ million	01.01. - 30.09.2024	01.01. - 30.09.2023
Maintenance expenses for externally procured services	$-77.5$	$-63.7$
Maintenance expenses provided internally	$-44.1$	$-40.7$
Maintenance expenses	$-121.6$	$-104.4$
Adjustments consolidation effects	6.5	1.4
Maintenance expenses (adjusted)	$-115.1$	$-103.0$
Investment in investment properties	$-179.5$	$-178.9$
Investment in property, plant and equipment	$-7.8$	$-2.4$
Capital expenditure (capex)	$-187.3$	$-181.3$
Adjustments consolidation effects	10.0	5.6
Capex (recurring)	$-177.3$	$-175.7$
Adjustments (new construction on own land, own work capitalised, subsidies recognised in profit or loss)	26.4	36.5
Capital expenditure (adjusted)	$-150.9$	$-139.2$
Total investment	$-308.9$	$-285.7$
Adjustments (consolidation effects, new construction on own land, own work capitalised, subsidies recognised in profit or loss)	42.9	43.5
Total investments (adjusted)	$-266.0$	$-242.2$
Area of investment properties in million sqm	10.80	10.85
Adjusted average investment per sqm (€)	24.63	22.33
Thereof maintenance expenses per sqm (€)	10.66	9.49
Thereof capital expenditure per sqm (€)	13.97	12.83

9. Financial instruments

The table below shows the financial assets and liabilities broken down by measurement category and class. Receivables and liabilities from finance leases and derivatives used as hedging instruments are included even though they are not assigned to an IFRS 9 measurement category. With respect to reconciliation, non-financial assets and non-financing liabilities are also included although they are not covered by IFRS 7.

The fair values of financial instruments are determined on the basis of corresponding market values or measurement methods. For cash and cash equivalents and other short-term primary financial instruments, the fair value is approximately the same as the carrying amount at the end of the respective reporting period.

For non-current receivables, other assets and liabilities, the fair value is calculated on the basis of the forecast cash flows, applying the reference interest rates as of the end of the reporting period. The fair values of derivative financial instruments are determined based on the benchmark interest rates in place as of the reporting date.

For financial instruments at fair value, the discounted cash flow method is used to determine fair value using corresponding quoted market prices, with individual credit ratings and other market conditions being taken into account in the form of standard credit and liquidity spreads when calculating present value. If no quoted market prices are available, the fair value is calculated using standard measurement methods applying instrument-specific market parameters.

When calculating the fair value of derivative financial instruments, the input parameters for the valuation models are the relevant market prices and interest rates observed as of the end of the reporting period, which are obtained from recognised external sources. The derivatives are therefore attributable to Level 2 of the fair value hierarchy as defined in IFRS 13.72 ff (measurement on the basis of observable inputs).

Both the Group's own risk and the counterparty risk were taken into account in the calculation of the fair value of derivatives in accordance with IFRS 13.

4. Classes of financial instruments for financial assets and liabilities as at 30.09.2024
	Carrying amounts as per statement of financial position 30.09.2024	Measurement (IFRS 9)		Measurement (IFRS 16)
€ million		(Amortised) Costs	Fair value through profit and loss	Fair value 30.09.2024
Assets
Other financial assets	372.1			372.1
Derivatives HFT	0.0		0.0	0.0
Hedge accounting derivatives	14.8			14.8
AC	0.6	0.6		0.6
FVIPL	356.7		356.7	356.7
Receivables and other assets	642.6			642.6
AC	530.7	530.7		530.7
Other non-financial assets	111.9			111.9
Cash and cash equivalents	462.9			462.9
AC	462.9	462.9		462.9
Total	1,477.6	994.2	356.7	1,477.6
Of which IFRS 9 measurement categories
AC	994.2	994.2		994.2
FVIPL	356.7		356.7	356.7
Liabilities
Financial liabilities	$-9,800.0$			$-9,288.1$
FLAC	$-9,693.2$	$-9,693.2$		$-9,288.1$
Liabilities from lease financing	$-106.8$		$-106.8$
Other liabilities	$-512.3$			$-512.5$
FLAC	$-140.8$	$-140.8$		$-141.0$
Derivatives HFT	$-66.9$		$-66.9$	$-66.9$
Hedge accounting derivatives	$-10.9$			$-10.9$
Other non-financial liabilities	$-293.7$			$-293.7$
Total	$-10,312.3$	$-9,834.0$	$-66.9$	$-106.8$
Of which IFRS 9 measurement categories
FLAC	$-9,834.0$	$-9,834.0$		$-9,429.1$
Derivatives HFT	$-66.9$		$-66.9$	$-66.9$

AC $=$ Amortised cost
HFT $=$ Held for trading
FVIPL = Fair value through profit and loss
FLAC = Financial liabilities at amortised costs

	Carrying amounts as per statement of financial position 31.12 .2023	Measurement (IFRS 9)		Measurement (IFRS 16)
€ million	$\mathbf{( 4 )}$	Fair value through profit and loss	Fair value 31.12 .2023
Assets
Other financial assets	355.5				355.5
Hedge accounting derivatives	25.7				25.7
AC	0.9	0.9			0.9
FVIPL	328.9		328.9		328.9
Receivables and other assets	277.9				-
AC	245.6	245.6			245.6
Other non-financial assets	32.3				-
Cash and cash equivalents	277.5				277.5
AC	277.5	277.5			277.5
Total	910.9	524.0	328.9		633.0
Of which IFRS 9 measurement categories
AC	524.0	524.0			524.0
FVIPL	328.9		328.9		-

Liabilities
Financial liabilities	$-9,375.8$				$-8,521.0$
FLAC	$-9,264.9$	$-9,264.9$			$-8,521.0$
Liabilities from lease financing	$-110.9$			$-110.9$
Other liabilities	$-373.9$				$-176.6$
FLAC	$-159.1$	$-159.1$			$-158.9$
Derivatives HFT	$-7.9$		$-7.9$		$-7.9$
Hedge accounting derivatives	$-9.8$				$-9.8$
Other non-financial liabilities	$-197.1$				-
Total	$-9,749.7$	$-9,424.0$	$-7.9$	$-110.9$	$-8,697.6$
Of which IFRS 9 measurement categories
FLAC	$-9,424.0$	$-9,424.0$			$-8,679.9$
Derivatives HFT	$-7.9$		$-7.9$		$-7.9$

AC $=$ Amortised cost
HFT $=$ held for trading
FVIPL $=$ Fair value through profit and loss
FLAC $=$ Financial liabilities at amortised costs

As at 30 September 2024, the fair value of a shareholding amounts to EUR 196.3 million (31 December 2023: EUR 168.3 million). The change compared to the previous reporting date amounts to EUR 28.0 million, of which EUR 28.0 million was recognised in profit or loss. This participation is allocated to Level 1 of the measurement hierarchy, as there is an active market for the shares.

The fair value of the other investments in the amount of EUR 160.4 million was last calculated as at 31 December 2023 using DCF procedures as there are no quoted prices in an active market for the relevant investments. The fair value calculated using valuation models is allocated to Level 3 of the IFRS 13 measurement hierarchy. Allocation to Level 3 takes place based on valuation models with inputs not observed on a market. The other companies continue to be measured using the simplified income capitalisation approach. The main model parameter in the simplified income capitalisation approach is the capitalisation rate of $7.1 \%$. The fair value of the portfolio companies is determined on the basis of the property values of the respective companies. The property values are determined on the basis of offer prices from a market database. The $25 \%$ percentile of the offer prices was selected for the valuation.

The stress test of the relevant valuation parameters for the other companies was carried out as at 31 December 2023 by increasing or decreasing the capitalisation rate by 50 basis points and for the real estate companies by using the $10 \%$ per-centile or median of the offer prices. The stress test of these parameters results in a reduction in the fair value to EUR 100.3 million when using the $10 \%$ percentile and increasing the capitalisation rate by 50 basis points and an increase in the fair value to EUR 210.1 million when using the median and reducing the capitalisation rate by 50 basis points.

10. Related-party disclosures

Please see the IFRS consolidated financial statements as at 31 December 2023 for the presentation of the IFRS 2 programs for long-term incentive component in the Management Board agreements.

11. Other

There were no changes with regard to contingent liabilities in comparison to 31 December 2023.

12. The Management Board and the Supervisory Board

There were no changes to the composition of the Management Board as at 30 September 2024 compared with the disclosures as at 31 December 2023.

The following changes occurred in the composition of the Supervisory Board:

Dr. Jochen Scharpe has resigned as a member of the Supervisory Board of LEG Immobilien SE with effect from the end of the 2024 Annual General Meeting.

Christoph Beumer was elected as a member of the Supervisory Board of LEG Immobilien SE at the 2024 Annual General Meeting.

13. Supplementary Report

On 4 November 2024, LEG Grundstücksverwaltung GmbH, a subsidiary of LEG Immobilien SE, has entered into an agreement with Adler Real Estate GmbH (Adler) relating to the acquisition of $52.68 \%$ of the shares in Brack Capital Properties N.V. (BCP). Together with its $35.52 \%$ stake in BCP already acquired in 2021/2022, LEG initially increases its stake to $88.20 \%$ upon completion of the share purchase agreement. In addition, Adler has committed, to tender its remaining $10.1 \%$ of the shares in case of a public offer by LEG regarding BCP (tender commitment).

There were no further significant events after the end of the interim reporting period on 30 September 2024.

Dusseldorf, 8 November 2024
LEG Immobilien SE
The Management Board

Lars von Lackum	Dr. Kathrin Köhling	Dr. Volker Wiegel
(CEO)	(CFO)	(COO)

Responsibility statement

"To the best of our knowledge, and in accordance with the applicable accounting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and results of operations of LEG, and the quarterly report includes a fair review of the development and performance of the business and the position of LEG, together with a description of the principal opportunities and risks associated with the expected development of LEG."

Dusseldorf, 8 November 2024
LEG Immobilien SE
The Management Board

Lars von Lackum	Dr. Kathrin Köhling	Dr. Volker Wiegel
(CEO)	(CFO)	(COO)

Financial calendar

• LEG financial calendar 2024

Release of Quarterly Statement Q3 as of 30 September 2024

• LEG financial calendar 2025

Release of Annual Report 2024
Release of Quarterly Statement Q1 as of 31 March 2025
Release of Quarterly Report Q2 as of 30 June 2025
Release of Quarterly Statement Q3 as of 30 September 2025

For additional dates see our $\bigcirc$ website.

Contact details \& imprint

PUBLISHER

LEG Immobilien SE
Flughafenstraße 99
D-40474 Dusseldorf
www.leg-se.com

CONTACT DETAILS

Investor Relations
Frank Kopfinger
ir@leg-se.com

The quarterly report as of 30 September 2024 is also available in German.
In case of doubt, the German version takes precedence.

LEG
LEG Immobilien SE
Flughafenstraße 99
D - 40474 Dusseldorf
Tel. +49 (0) 2114568 - 0
ir@leg-se.com
www.leg-se.com